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Home » Forex Technical Analysis » EUR/USD Declines Continue: US Dollar Strength Pressures Euro

EUR/USD Declines Continue: US Dollar Strength Pressures Euro

  • October 7, 2024
  • 48

The EUR/USD currency pair has exhibited weakness, trading around 1.0965 during early trading on Monday in Europe. This marks the seventh consecutive day of declines for the pair, which faces pressure primarily due to a strengthening US Dollar. Recent employment data from the United States has caused many traders to reassess their predictions regarding a potential 50 basis points interest rate cut by the Federal Reserve in November, adding to the downward momentum for the EURO against the dollar.

Analysis of the daily trading charts indicates vulnerability in the bullish outlook for EUR/USD , particularly as it hovers near the critical 100-day Exponential Moving Average (EMA). A break below this EMA, currently at approximately 1.0970, could trigger further declines toward the next support level at 1.0881, which was last seen on August 8. Further down, the 1.0805 to 1.0800 range serves as another crucial support area, reflecting the lows recorded on July 9.

In terms of market indicators, the Relative Strength Index (RSI) remains below the neutral midpoint at around 37.55, reinforcing a bearish sentiment and suggesting that the current trajectory of the pair leans toward further weakness.

Conversely, should the pair manage to rebound, the psychological level of 1.1000 will serve as the immediate barrier for any upward movement. If this resistance is breached, traders may look for a potential rally toward 1.1144, marking the high from October 1, with an even more significant breakthrough possibly leading to a challenge of 1.1223, the upper boundary of the Bollinger Band.

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