The euro surged past the strong resistance level of 1.1186. Yesterday's trading volume was above average. The market is once again driven by risk appetite. The S&P 500 index rose by 0.25%, oil prices increased by 1.73%, and the yield on 5-year U.S. government bonds dropped from 3.50% to 3.47%. Strategic players seem to have taken firm control of the market and are unlikely to let it fall before the U.S. elections.
Previously, we expected a less firm grip on this event (as the Federal Reserve wasn't afraid to lower the rate by 0.50%) and anticipated sideways movement of the S&P 500 until December, which could have triggered a euro decline. However, the market keeps setting new all-time highs day by day.
New targets have now opened up for the euro: 1.1276 (the peak of July 2023) and 1.1335. The Marlin oscillator on the daily time frame has returned to the uptrend territory.
On the four-hour chart, the price has consolidated above the balance line (red moving average), and the Marlin oscillator shows an apparent rise in the positive zone. The situation is bullish in both time frames. We are now watching for the price to reach the first target of 1.1276.
