The bulls took over the market in EUR/USD

6 feb 2022

Hello everyone :) I hope you are all doing well. I wondered which is the most interesting instrument suitable for analysis this week and concluded that it is definitely EUR/USD. Cristhine Legarde surprised the market last week when she did not rule out an increase in interest rates this year (although it could be in the last quarter of the year, but it is still very unexpected from the European Central Bank). Inflation in Europe is spiraling out of control and everyone understands that, so the ECB must do something about it. This was a very pleasant moment for the EUR, which showed great performance last week and really strong growth. When it comes to the technical picture, we can see a strong bull candle representing last week's activity This is a weekly chart and we can see that RSI shows bullish divergence while MACD is just truned bull, but the pair has to do some retracement and this may be our chance to go long. One more thing, if we include the Fibonacci retracement in this analysis (which you can see in the chart), we can see that the pair is on a retracement of 0.618 and is closed above that level, which may be another argument for the bulls.
I wish you all a good trading week :)