The Euro/dollar chart is definitely following a down movement, the question is “will it continue following this path and until when”.
The volume is decreasing, which implies that the retail investors are not willing to buy for the moment, showing strength of selling, but this is in my opinion about to change if the interest rates are again increased by the European Central Bank in the following months, this macroeconomic fact will affect positively the euro value.
On the other hand the bear movement is reaching the Fibonacci support 0.876, at a value of 0.98449 which indeed is near the 0.98955 support, which has worked in previous periods as a support and resistance before a big movement, if the price breaks this resistances we will see a bigger movement on the down side, which will magnify the effect of inflation in the euro area, and the purchasing power of European citizens and firms to import goods and services.
The volume is decreasing, which implies that the retail investors are not willing to buy for the moment, showing strength of selling, but this is in my opinion about to change if the interest rates are again increased by the European Central Bank in the following months, this macroeconomic fact will affect positively the euro value.
On the other hand the bear movement is reaching the Fibonacci support 0.876, at a value of 0.98449 which indeed is near the 0.98955 support, which has worked in previous periods as a support and resistance before a big movement, if the price breaks this resistances we will see a bigger movement on the down side, which will magnify the effect of inflation in the euro area, and the purchasing power of European citizens and firms to import goods and services.