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09.06.2023 09:17 AM
Hot forecast for EUR/USD on June 9, 2023

It seems that the market is simply tired of the excessive overbought condition of the dollar, and investors initiated a sell-off, even despite fairly good US data. The number of initial unemployment claims increased by 28,000, which is quite significant. However, the number of continued claims fell by 37,000. And they have much greater significance than initial claims. And logically, the dollar should have been rising. But the dollar's overbought condition has persisted for quite some time. In fact, it's still overbought. Yesterday's growth only managed to relieve a bit of the tension. But if the corrective movement started without any reason, it is likely to persist today.

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The EUR/USD is ending the trading week with a sharp rise, during which the local June high was updated. The price approached the level of 1.0800, which acts as resistance for buyers.

On the four-hour chart, the RSI almost reached the overbought territory during the overnight sharp rise, but it did not cross the signal level. Take note that the indicator's convergence with the overbought territory coincides with the price approaching the resistance level of 1.0800. Thus, the combination of technical signals may indicate a decline in the volume of long positions on the euro.

On the four-hour chart, the Alligator's MAs have changed direction and it currently points to growth.

Outlook

The decline in the volume of long positions on the euro has led to a slowdown in the upward cycle, where the 1.0800 level plays a special role in the distribution of trading forces. In this case, in order to continue the upward movement, the price needs to stay above the control level, at least in the four-hour period. Otherwise, a full-scale price rebound may occur.

The complex indicator analysis unveiled that in the short-term and intraday periods, indicators are providing an upward signal.

Dean Leo,
Analytical expert of InstaForex
© 2007-2024
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