The EUR/USD pair has been trading in a tight range, with the bulls wanting the channel to continue but under a lot of selling pressure. The pair has been dropping since the start of the day and is currently trading around 1.09112. The market sentiment is bearish due to the mixed economic news and meetings that are scheduled today.
The market is currently struggling to find a foothold with the US Dollar recovering from its earlier weakness. The European Central Bank (ECB) held its monetary policy meeting yesterday, but the meeting failed to provide any clear guidance. The Bank of England (BoE) is also due to meet today, and the outcome of this meeting could have a significant impact on the EUR/USD pair.
The pair is currently heading towards the 1.08750 level, which is the bottom line of the rising trend channel. If the pair continues its downward trajectory, it could test the support level of 1.08750. The risk-averse market atmosphere is likely to keep the US Dollar in demand and make it difficult for the EUR/USD pair to recover.
The market is currently struggling to find a foothold with the US Dollar recovering from its earlier weakness. The European Central Bank (ECB) held its monetary policy meeting yesterday, but the meeting failed to provide any clear guidance. The Bank of England (BoE) is also due to meet today, and the outcome of this meeting could have a significant impact on the EUR/USD pair.
The pair is currently heading towards the 1.08750 level, which is the bottom line of the rising trend channel. If the pair continues its downward trajectory, it could test the support level of 1.08750. The risk-averse market atmosphere is likely to keep the US Dollar in demand and make it difficult for the EUR/USD pair to recover.
Comment:
The EUR/USD currency pair has been struggling in the past few days after the US data showed that the economy grew at an annual rate of 2.9% in the fourth quarter. The Relative Strength Index (RSI) (14) indicates that the currency pair is overbought and could likely lead the pair to the 10-day Moving Average (DMA) support at 1.0850. However, a further decline will need to pass the 1.0735 level, which is the previous monthly low, to welcome the EUR/USD bears. If the pair breaks past 1.0940, it could move towards the 1.1000 round figure. According to the latest EUR/USD forecast and analysis provided by the DailyFX team, the EURUSD price trend is upward. Over the last two days, there have been no good opportunities to buy, but each drop has been followed by a sharp rise. The most likely scenario is that the upward movement will continue towards 1.0990. Viewing the live Euro/U.S. Dollar chart shows that there is a lot of news today, leading to expectations of large fluctuations. If the currency pair heads towards 1.0865, then there will be a pullback and buying opportunity.
Trade closed: target reached:
he EUR/USD currency pair saw a decline in trading on the day, with the closing rate dropping from 1.09234 to 1.08619 . This decrease was expected, as the pair had become overbought and was likely to move lower towards the 10-day moving average (DMA) support of 1.0850 . The bears also need to break through the previous monthly low at 1.0735 to continue pushing the EUR/USD lower . On the other hand, a break of the six-week-long resistance line at 1.0940 could quickly send the EUR/USD higher towards the 1.1000 mark . However, another ascending trend line resistance is likely to challenge the buyers at 1.1090 .