EURUSD | New Low to 1.0750 before the Rally!

EUR/USD, after breaking through a demand zone between 1.07 and 1.0790, is now heading towards another demand area at the level of 1.075, coinciding with the low of the bearish channel. This zone could be significant for an upward reversal in price, with a potential return towards 1.09. It will be crucial to assess the price action at the London opening this morning, especially considering the reaction to the NFP data after the sharp drop on Friday.

From a fundamental perspective, the US Dollar is strengthening as Federal Reserve Chair Jerome Powell delays potential rate cuts. Geopolitical tensions in the Middle East are further supporting the Dollar. We are awaiting EU Sentix data and US ISM PMI. In the post-meeting press conference on Wednesday, Powell stated that "unexpected weakening in the labor market would lead us to cut rates earlier than expected."

According to the CME FedWatch tool, there is a 37.5% probability that the Fed will reduce the policy rate by 25 bps to 5%-5.25% in March, while this probability rises to 60% for May. Warm regards and happy trading to all.

Comment:

On EUR/USD the price broke the demand zone at M15.. Today will follow a new analysis on EURUSD.