ConanForex

EURUSD strategy has slight changes

Short
ConanForex Updated   
FX:EURUSD   Euro / U.S. Dollar
Dear traders! Earlier we saw the bulls' attempt to maintain a gradual rise towards the 1.0900 level. However, the Pair retreated after the unsuccessful attempt, mainly due to the strengthening of the US Dollar (USD), dragging EUR/USD to a new 5-day low near the 1.0820 region.

Looking ahead, relatively weak economic fundamentals in the Eurozone, coupled with the resilience of the US economy, support the ongoing narrative of divergence. Fed-ECB policy divergence and leans towards a stronger Dollar for longer, especially when considering the possibility of an ECB increase. reduce interest rates before the Fed. With this perspective, the possibility of EUR/USD continuing to weaken should be considered in the medium term.

Similar to the fundamentals, technically on the 4-hour chart we see the trend changing, the resistance area continues to hold the price and is actively defended by sellers on the basis of the wave of correction and sell-off. Currently, there is a possibility that the currency pair tests the liquidity zone and then continues to weaken according to the technical outlook because the fundamentals are weak for the common pair. Expected targets at least on H4 are the 1.0767 and 1.0723 areas.
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Comment:
The data from Germany and the EU showed that the business activity in private sector expanded at an accelerating pace in May, helping the Euro find demand. US PMI reports will be published later.
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