Michael Boutros, FOREX.com Senior Market Analyst, analyzes EUR/USD technical levels, Federal Reserve policy expectations, ECB rate decisions and inflation risks as the euro attempts to recover from a sharp multi-month decline. He explains why key resistance zones remain critical despite the recent rebound and outlines the levels that could determine whether EUR/USD resumes its downtrend or begins a larger reversal.
Euro trims losses on ECB tightening hopes, mild US Dollar weakness
EUR/USD is edging higher towards the 1.1550 level on Tuesday, supported by expectations of a hawkish ECB this week. However, gains remain limited amid uncertainty surrounding the Middle East, which could revive safe-haven demand for the U.S. dollar.
The euro managed to fall below the triangle support, which may trigger a further decline. The market is still watching tensions in the Middle East as the main driver behind this bearish scenario.
Intraday analysis covering EURUSD begins correcting , NZDUSD , and US 30, highlighting recent price movements, key technical levels, and short-term momentum shifts across major markets. EURUSD begins correcting The dollar surged as traders reacted to the recent tensions in the Middle East.
Euro: Two month low tests against US Dollar as yields swing – Danske Bank
Following last week's surge in the US dollar, there was some further upside initially and that caused the EUR/USD to fall to 1.15 handle first thing this morning, before bouncing back. The euro initially fell further as oil prices extended their gains on fresh escalation in the Middle East conflict with Iran and Israel exchanging fires.
British Pound: Seen lower against Euro and US Dollar – ING
EUR/USD began the new week at 1.1520. The US dollar ended last week with gains of more than 1% following a strong US labour market report.
The Euro failed to surpass 1.1650 against the US Dollar. EUR/USD started a fresh decline below 1.1620 and 1.1600 to move into a bearish zone.
EURUSD currency pair recently broke the support zone between the support level 1.1600 (which stopped earlier correction (2)) and the 61.8% Fibonacci correction of the upward impulse (1) from March.
This weekly EUR/USD outlook was written before the end of European session on Friday and was therefore subject to some volatility during the NY session. At the time of writing, the US dollar looked set to finish the week on a strong footing after a much stronger-than-expected labour market report prompted investors to reassess the outlook for Federal Reserve policy, sending yields higher.