Forex Chart Of The Day: EURUSD Will Price Test Parity Again?

The price of EURUSD could be heading back to parity as the weekly downward trend looks to continue.

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EURUSD Analysis

The price of EURUSD could retest parity again in line with the weekly downward trend. The USD has been gaining momentum again pushing EURUSD prices lower. From a fundamental perspective the USD could continue to grow stronger especially after Federal Reserve Chairman Powell’s recent statements. The Chairman said that data showed that recent rate hikes seemed to have had little effect on the rising inflation rate. This comment alone suggests that the Fed may have to act strongly again with further rate increases. The market had been pricing in a 50bps hike but these comments could be seen as a 75bps hike is more likely. This could see the USD strengthen in preparation for higher rate hikes to come.

Looking at the charts we can see that the weekly trend could be turning from a retracement phase into an impulsive one. This is shown on the 4hr chart with the price forming new lower lows and lower highs. If this trend continues we will likely see a move back into the lows and parity. The daily volume profile shows volumes building higher which could act as resistance if the price gets a retest.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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