euro trading strategy October 19, 2023

Financial markets are gradually turning away from macro data and toward the increasingly unstable situation in the Middle East. Today, US President Joe Biden went to Israel to negotiate with Prime Minister Benjamin Netanyahu, but his meeting with the leaders of Palestine, Egypt and Jordan was abruptly canceled last night after a hospital Gaza was attacked by rockets, believed to have been launched by Israel. As the conflict between the two sides escalates, traders have turned to gold as a safe haven.

With few factors supporting the Euro, the EUR/USD currency pair is being influenced mainly by the US dollar. EUR/USD seems to be stuck in the 1.0450 - 1.0630 range. A confirmed break below the 20-day SMA would take the price to the support zone of 1.0500 -1.0516. Further away is the 1.0450 area.