On Friday, the euro strengthened its growth, overcoming not only the high on June 7, but also the Fibonacci level of 76.4% (1.1356), showing the intention to grow to the next Fibonacci level of 61.8% at the price of 1.1445, which almost coincides with the high of March 20. But since we consider the past week’s growth as a speculative phenomenon, and what we mentioned in previous reviews, we are wary of this, and any other “bullish” goal.
Technically, the first signal for caution is the readiness of the Marlin oscillator of the daily chart to form a divergence. Divergence can also be formed when the euro rises to 1.1445, but for this to happen, the growth should be with kickbacks.
This week the main events will be the G20 summit, where the issue of US-China trade relations with China and the EU will be resolved (June 27-28), and the EU leaders summit on the 30th, at which the choice of head of the ECB will be decided. Prior to the first news, volatility is expected to be low. And as a result of reduced volatility, the technical aspect of the euro’s growth remains the strongest.
The material has been provided by InstaForex Company – www.instaforex.com