Ultima Markets: EURUSD Analysis - Europe increases spending

Fundamental Analysis of EURUSD

EURUSD Key Takeaways

• Germany increases spending: Germany‘s historic plan to increase spending shocked European markets on Wednesday, pushing European stocks to outperform US stocks, bringing the euro back from the brink of parity with the US dollar and giving German government bonds their worst day since 1990.

• Germany’s new strategy: Germany‘s new strategy will free up hundreds of billions of euros for transportation, energy and housing, a dramatic shift that subverts Germany's control over government borrowing. It is reminiscent of former ECB President Draghi’s 2012 speech to save the euro "at all costs", which became an abbreviation for policy determination at the time.

Technical Analysis of EURUSD Daily and Hourly Charts

EURUSD Daily Chart Insights

(EURUSD Daily Price Chart)

• Stochastic oscillator: The indicator once again sends a bullish signal above the 50 median line, suggesting that the short-term bullish force is strong. The slow line is not close to the overbought area at present, and the exchange rate is still expected to continue to rise.

• Elliott Wave: After the EUR/USD accelerated to break through the upward channel line and the green 200-day moving average, the exchange rate clearly entered the 3rd wave of the wave theory. The strong trend is expected to push the euro to around 1.1402, which is the Fibonacci 2.618 extension level.

EURUSD H1 Chart Analysis

(EURUSD H1 Price Chart)

• Stochastic oscillator: Upward trend line: The slope of the upward trend line of EUR/USD continues to increase, which clarifies the accelerated rise of the exchange rate. Once the exchange rate falls below the short-term or faces adjustment.

• Moving average support: The current bullish trend is strong, and the purple 13-period moving average becomes the “touchstone” of whether the short-term trend is over. Until the exchange rate falls below this moving average, the trend will always be bullish.

Pivot Indicator Insights for EURUSD

(EURUSD M30 Price Chart)

• According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 1.0720,

• Bullish Scenario: Bullish sentiment prevails above 1.0720, first target 1.0870, second target 1.0910;

• Bearish Outlook: In a bearish scenario below 1.0720, first target 1.0675, second target 1.0630.

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