EUR/USD: Modest Bearish Pressure Persists as USD Shows Signs of
EUR/USD: Modest Bearish Pressure Persists as USD Shows Signs of Recovery
The EUR/USD pair commenced the new week under the influence of modest bearish pressure, aligning with our previous analysis idea that successfully reached the first take-profit level at 1.08500. Meanwhile, the US Dollar (USD) exhibits signs of recovery, rebounding at the 61.8% Fibonacci level on the daily chart, potentially steering the Euro towards a bearish continuation with a target set at 1.0800.
Market Analysis:
Despite the ongoing bearish pressure, it's noteworthy that the EUR maintains its uptrend in the daily timeframe. The dynamics of the Euro's performance are closely tied to the current economic landscape.
Geopolitical Tensions and USD Resilience:
Escalating geopolitical tensions have prompted investors to retreat from risk-sensitive assets, resulting in the US Dollar showing resilience against its rivals early in the week. Growing concerns over the Israel-Hamas conflict, exacerbated by Yemen's Houthi rebels' attack on two Israeli ships in the Red Sea, have contributed to a cautious market sentiment.
ECB Policymakers' Stance:
The European Central Bank (ECB) policymakers have countered market expectations of rate cuts as early as the second quarter of 2024. The potential impact of ECB President Christine Lagarde adopting a hawkish tone could bolster the Euro's strength in the coming periods.
Conclusion:
As the EUR/USD pair navigates through geopolitical uncertainties and central bank communications, traders should remain vigilant for potential shifts in market dynamics. The interplay of geopolitical events and monetary policy decisions will likely influence the trajectory of the Euro and the US Dollar in the days to come.
Our preference
Short positions below 1.0965 with targets at 1.0800 in extension.
The EUR/USD pair commenced the new week under the influence of modest bearish pressure, aligning with our previous analysis idea that successfully reached the first take-profit level at 1.08500. Meanwhile, the US Dollar (USD) exhibits signs of recovery, rebounding at the 61.8% Fibonacci level on the daily chart, potentially steering the Euro towards a bearish continuation with a target set at 1.0800.
Market Analysis:
Despite the ongoing bearish pressure, it's noteworthy that the EUR maintains its uptrend in the daily timeframe. The dynamics of the Euro's performance are closely tied to the current economic landscape.
Geopolitical Tensions and USD Resilience:
Escalating geopolitical tensions have prompted investors to retreat from risk-sensitive assets, resulting in the US Dollar showing resilience against its rivals early in the week. Growing concerns over the Israel-Hamas conflict, exacerbated by Yemen's Houthi rebels' attack on two Israeli ships in the Red Sea, have contributed to a cautious market sentiment.
ECB Policymakers' Stance:
The European Central Bank (ECB) policymakers have countered market expectations of rate cuts as early as the second quarter of 2024. The potential impact of ECB President Christine Lagarde adopting a hawkish tone could bolster the Euro's strength in the coming periods.
Conclusion:
As the EUR/USD pair navigates through geopolitical uncertainties and central bank communications, traders should remain vigilant for potential shifts in market dynamics. The interplay of geopolitical events and monetary policy decisions will likely influence the trajectory of the Euro and the US Dollar in the days to come.
Our preference
Short positions below 1.0965 with targets at 1.0800 in extension.
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