EUR/USD resumes lows
After bouncing off the trend line that has been in place since October 2023, around 1.0760, the selling seems to have resumed in the EUR/USD today. Price has found resistance right off the 1.0835-40 region. This area has provided some support at the back end of last week, before giving way earlier this week. Once support, it has turned into resistance. From here, the EUR/USD could revisit the trend line and the August low of 1.0777, with the subsequent bearish target being around 1.0700.
The dollar's strong rally in recent weeks and the simultaneous climb in bond yields are clear headwinds for the EUR/USD. Next week is a busy one for the economic calendar with lots of US economic data, and lots of major company earnings all to come ahead of the November 5 US Presidential election in the following week.
It is unlikely that the dollar will sell-off ahead of the election, meaning the pressure is likely to remain on the EUR/USD in the week ahead.
By Fawad Razaqzada, market analyst at FOREX.com
The dollar's strong rally in recent weeks and the simultaneous climb in bond yields are clear headwinds for the EUR/USD. Next week is a busy one for the economic calendar with lots of US economic data, and lots of major company earnings all to come ahead of the November 5 US Presidential election in the following week.
It is unlikely that the dollar will sell-off ahead of the election, meaning the pressure is likely to remain on the EUR/USD in the week ahead.
By Fawad Razaqzada, market analyst at FOREX.com
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