EUR/USD Rebounds Amidst US Exceptionalism: What Lies Ahead?

The EUR/USD pair experienced a significant decline towards the end of last week, driven by the release of Eurozone and US flash PMI data. These figures underscored the perceived strength of the US economy, leading to speculation that the Federal Reserve (Fed) may reconsider its aggressive stance on interest rate cuts.

The data painted a picture of US exceptionalism, suggesting that the American economy continues to perform relatively well compared to its European counterpart. This sentiment has raised doubts about the Fed's projected timeline for interest rate cuts, potentially prompting a more cautious approach from the central bank.

A slower pace of rate cuts by the Fed could bolster the US Dollar, as higher interest rates typically attract greater foreign capital inflows. As a result, the EUR/USD pair may face continued pressure, with potential resistance levels seen around the 1.08600 to 1.08900 area before resuming its downtrend.

Traders are advised to monitor these resistance levels closely and consider implementing limit selling positions in anticipation of a potential reversal. Additionally, today's release of US New Home Sales and the Chicago Fed National Activity Index may provide further insights into the health of the American economy, influencing market sentiment towards the EUR/USD pair.

Comment:

✅ ACTIVE

Trade active:

The EUR/USD pair experienced a turnaround after surpassing 1.0860 on Tuesday, hinting at potential bearish trends ahead. In the midst of this volatility, traders are actively seeking ways to adjust their strategies to navigate uncertain market conditions.

February saw a 1.4% increase in US Durable Goods Orders, slightly exceeding expectations and providing support for the USD. However, with no significant economic releases scheduled later in the day, traders are taking the opportunity to reassess their positions.

In response to market fluctuations, we recommend aligning Stop Loss (SL) levels with Entry points. This strategic approach aims to reduce risk and enhance trade execution in the face of unpredictable market movements.

Comment:

✅ Close 50% Volume and Move SL to Entry

Trade closed: target reached:

✅ DONE