The Euro weakened against the US Dollar on Friday as investors continued rotating back into the greenback amid renewed geopolitical uncertainty and shifting expectations for US interest rates. The Euro to Dollar exchange rate (EUR/USD) fell to 1.1622 (-0.34%), extending this month's retreat after the pair briefly traded near 1.18 earlier.
EUR/USD is under renewed pressure after failing once again at major resistance, with a weekly reversal of more than 1.4% now breaking below key moving averages. The reversal shifts the near-term focus back to the downside, with price now approaching a key pivot zone near the 1.16-handle.
EUR/USD remains under heavy pressure after breaking below the May opening range, with the pair extending a five-day selloff towards major technical support near the 1.16-handle. The decline reflects accelerating downside momentum following last month's rejection at key resistance, bringing the focus to a critical zone that could determine whether the move stabilizes or extends into a broader breakdown.
The Euro managed to break above the resistance level of the triangle formation to meet the first target at 1.8000. Resistance at 1.1800-35 caused a drop while supports at 1.1600 could create a trading zone.
Yesterday saw a number of markets drop sharply and we have seen some good downside follow-through so far into today's early European session. Even the mighty Nasdaq 100 futures took a hit, after a relatively narrow tech-led rally pushed the benchmark to fresh record highs.
EUR/USD Price forecast: Hits lows at 1.1620 on risk aversion, high Oil prices
The US dollar and Treasury yields continue climbing toward fresh yearly highs, pressuring both the euro and gold as markets start to price in risk-off sentiment driven by rising inflation and profit-taking across technology-led rallies.
Euro: Technical break points to 1.160 test versus US Dollar – ING
EUR/USD Price Forecast: Near-term bias turns negative on breakdown below 1.1655
The trading week is almost over and, so far, EUR/USD has started to show a three-session bearish streak, accumulating a loss of more than 0.8% in the short term. This behavior has begun to reflect a relevant bearish bias once again, driven by the continued recovery in US dollar strength, leaving the euro in a weaker short-term position.
EUR/USD is bouncing from 1.17 support but remains trapped in a tight range ahead of Friday's US jobs report and ongoing bond-market volatility.
European currencies have moved into a corrective phase following recent gains, while market participants focus on upcoming macroeconomic data from the UK, the eurozone and the United States. After a strong upward move, both currencies returned to their previous trading ranges, signalling a shift towards consolidation ahead of important economic releases.