The interest rate hike cycle may be over, EURUSD may be bullish
Despite failing to extend recent gains,
EURUSD
EUR/USD hit a new monthly high of 1.0895.
EUR/USD broke above the September high of 1.0882 after the US consumer price index fell short of expectations, and as expectations for US interest rate hikes fade, the exchange rate may continue to retrace the August high (1.1065). If the Relative Strength Index (RSI) rises above 70, it could be accompanied by further gains in the currency rate, as was the case with price action earlier this year.
CME Federal Watch Tool
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
According to data from the CME Federal Watch Tool, the Fed is expected to have a 97.7% probability of maintaining the status quo at its last meeting in 2023, which is close to or ending its interest rate hike cycle.
Therefore, while the Relative Strength Index (RSI) may show an overbought signal, it may accompany further gains in EUR/USD, however, if the RSI fails to rise above 70, it would indicate that the bullish momentum is waning.
EURUSD
EUR/USD hit a new monthly high of 1.0895. EUR/USD broke above the September high of 1.0882 after the US consumer price index fell short of expectations, and as expectations for US interest rate hikes fade, the exchange rate may continue to retrace the August high (1.1065). If the Relative Strength Index (RSI) rises above 70, it could be accompanied by further gains in the currency rate, as was the case with price action earlier this year.
CME Federal Watch Tool
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
According to data from the CME Federal Watch Tool, the Fed is expected to have a 97.7% probability of maintaining the status quo at its last meeting in 2023, which is close to or ending its interest rate hike cycle.
Therefore, while the Relative Strength Index (RSI) may show an overbought signal, it may accompany further gains in EUR/USD, however, if the RSI fails to rise above 70, it would indicate that the bullish momentum is waning.