empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

07.05.202409:32 Forex Analysis & Reviews: Hot forecast for EUR/USD on May 7, 2024

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The eurozone producer price index rose from -8.5% to -7.8%, but it had no effect on the situation, and the single currency stood still all day. Of course, we can say that this report was not crucial, but that wouldn't be right. After all, we are talking about the component part of inflation, which is an indicator of further dynamics. And considering that the dollar is still overbought, even small hints of inflation growth in Europe should support the euro. The reason why the market is stable is partly because the previous report was revised. The rate of decline increased from -8.3% to -8.5%. This offset the effect of the slowdown.

Today, the single currency will get another chance to strengthen. This time it will be the retail sales report. The rate of decline is expected to slow down from -0.7% to -0.3%. And it turns out that consumer activity in Europe seems to be increasing, coupled with a hint of rising inflation. Which from the financial markets' perspective is a great thing.

Exchange Rates 07.05.2024 analysis

The EUR/USD pair has pulled back from the resistance level of 1.0800. As a result, the volume of short positions increased and this interrupted the upward cycle.

On the four-hour chart, the RSI shows a decline, but the indicator is still hovering in the upper area of 50/70.

On the same chart, the Alligator's MAs are headed upwards, which reflects the bullish sentiment.

Outlook

The price must settle above the 1.0800 level in order for the volume of long positions to rise. Until then, the retracement stage will persist, and in case the price stays below 1.0750, the volume of short positions may continue to increase.

Complex indicator analysis indicates a pullback from the resistance level in the short- and long-term timeframes.

Dean Leo
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off