The U.S. Dollar Index (DXY) remains stable but sluggish, trading around 100.20 as safe-haven demand eases following reports of a possible de-escalation in Middle East tensions. In this article, we'll review DXY's technical outlook and the prospects for EUR/USD and GBP/USD.
The Euro retreated from the resistance of 1.1655 and managed to close from the target and support of 1.1400 last Friday. We also anticipated that a rebound from 1.1400 could hit the market as the first resistances are at 1.1510 and 1.1655.
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EUR/USD Price Forecast: Holds firm near 1.1450 but bearish signals persist below key EMA
Looking at the 4-hour chart, the pair settled well below 1.1500, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There is also a key bearish trend line forming with resistance at 1.1550.
EUR/USD remains on the defensive below 1.1450 on Middle East tensions
The Euro to Dollar (EUR/USD) exchange rate extended its March slide and finished the week in the mid-1.14s, leaving the pair close to the month's lows. Price action remained dominated by risk-off demand for the dollar amid the energy and geopolitical shock, while traders looked ahead to a heavy central-bank and US data run in the days.
The EUR/USD has gone into this weekend near the 1.14165 ratio as risk sentiment in the broad financial markets continued to stay sour and create a bearish stampede.
The Euro has extended its sharp decline from the February highs, sending EUR/USD to its lowest levels in seven months and confirming a decisive shift in momentum. The breakdown below the 52-week moving average underscores the strength of the recent selloff threatens further losses for the single currency.
EUR/USD Price Forecast: Ends week near 1.1400, down below the 200-DMA