The week opened with a bang as oil prices gapped up and quickly ran above the 100-level in WTI. But that breakout didn't last, serving as a cautionary tale for those chasing weekly open gaps.
EUR/USD: Forecasts cut on energy shock – Rabobank
EUR/USD holds near seven-month lows as traders digest US data, Dollar remains firm
Intraday bias in EUR/USD stays on the downside as fall from 1.2081 is in progress. Deeper decline should be seen to 38.2% retracement of 1.0176 to 1.2081 at 1.1353 next.
Crude oil is continuing to dictate direction for markets as we head towards the end of a volatile week. Brent oil traded above $100 per barrel overnight and that saw indices drop across the board while the dollar extended its upsurge.
The Euro to Dollar (EUR/USD) exchange rate slumped to 3-month lows just above the 1.1500 level at the beginning of this week before a tentative recovery and is trading just above 1.16. Danske Bank expects trends in energy prices will dominate and sees renewed EUR/USD selling.
The Euro managed to retreat from the resistance of 1.1655 whilst closing from the support at 1.1500 which could push for a rebound. As we see from the chart and if prices hold below the said resistance, the pressure will still affect the market for a further drop towards 1.1400.
EUR/USD: Under pressure on energy shock – ING
The EUR/USD exchange rate continued its strong downward trend, reaching its lowest level since November last year. It dropped to 1.1495, down sharply from the year-to-date high of 1.2080.
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