EUR/USD | Heading Towards 1.10 Without Fed Rate Cuts

The beginning of the week saw the US dollar strengthen, pushing the EUR/USD below the key support level of 1.0900. A break of the March peak at 1.0981 is expected to lead the pair to challenge resistance at 1.0998 and the psychological barrier at 1.1000. However, a potential drop below the 200-day moving average at 1.0838 could push the pair to the 2024 low of 1.0694. In the macroeconomic context, both the Federal Reserve (Fed) and the European Central Bank (ECB) are considering starting their easing cycles, leading to a strengthening of the dollar in the medium term. Consequently, the EUR/USD may correct downwards towards 1.0700 and possibly towards 1.0500 in the long term. Technical analysis on the daily chart suggests a price decline towards the 1.0800 zone before bouncing off the trendline and resuming upward movement, with a target at 1.1000. Further updates will follow. Regards and happy trading to all from Nicola.

Comment:

Good reaction of the price at the reversal zone,. Waiting for the good opportunity to go long...

Comment:

EURUSD is ready to go down after the break of the reversal box and the trendline. Waiting for a retest at 1.0860 before to evaluate a possible short.