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After an insignificant drop, the euro resumed gaining in value and returned to 1.01. However, the increase was not very noticeable. After a sharp interest rate hike by the ECB, traders are waiting for further actions from the US Fed. However, the FOMC meeting will take place only next week. Thus, the US inflation report is the only event that may affect investors' sentiment and force the market to move. Until then, the currencies are likely to hover near the current levels, whereas the euro will hardly exceed 1.01.
Last week, the euro managed to increase against the US dollar. As a result, the quote jumped above the 2-week range of 0.9900/1.0050
On the four-hour chart, the RSI technical indicator reached the overbought area amid the euro's appreciation. As a result, traders received signals about local overheating of long positions. On the daily chart, the indicator upwardly intersected the mid 50 line, thus forming an initial signal of a possible change in the market sentiment.
On the four-hour chart, the Alligator's MAs are headed upward, which corresponds to the upward movement of the euro. On the daily chart, the indicator provides an initial signal of a change in the direction. The green moving average upwardly intersects a red one.
On the daily chart, we see a slowdown of the downtrend. This fact is proved by stagnation near the parity level.
Outlook
A new upward gap of about 60 pips appeared at the beginning of the new trading week. The gap allowed the pair to return to last week's high. To form a signal of a further upward movement, the pair should consolidate above 1.0120. Otherwise, it will slide to the parity level.
In terms of the complex indicator analysis, we see that on the short-term and intraday periods, technical indicators are pointing to an uptrend as the price is trading around last week's high. In the mid-term period, the indicator is providing mixed signals, which are mainly reflecting a downtrend.
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