The euro has had a great week. If trading ended at current levels, it would be the best 5-day period since November 2023. The pair broke above the 1.0500 barrier and thus broke through the 200-period moving average on the H4 interval, which stopped the upward wave in early November.
The pivotal strengthening of the euro today (the nearly 0.9% rise in the EURUSD pair's quotations is mainly due to 3 factors). First, investors learned surprisingly good PMI data for January for Germany, which gave hope for the near normalization of economic conditions in Europe's main economy. Second, the dollar is losing ground on the wave of a hawkish rate hike in Japan by the BoJ, which additionally indicated that in all likelihood the tightening cycle will continue. Third, Donald Trump mentioned on Fox TV that the US has a strong ace up its sleeve vis-à-vis China in the form of tariffs, but he did not suggest that the US intends to use them immediately, which provided relief from expectations of tightening terms of trade with China.
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Open account Try demo Download mobile app Download mobile appThe EURUSD pair pierced an important support point, which stopped an attempt to negate some of the declines on the EURUSD pair in November.
Source: xStation
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