EUR/USD Faces a New Neutral Movement
The latest movements in the EUR/USD pair have been highly indecisive in the short term, with strength constantly shifting between the U.S. dollar and the euro. This is due to the increasingly neutral stance of both currencies, fueled by the ongoing tariff-related turmoil from the White House. Initially, these policies significantly strengthened the U.S. dollar, but confidence in the euro has gradually returned as the market begins to view Trump’s approach as a negotiation tactic rather than a policy with long-term economic consequences.
As a result, short-term dollar weakness has become evident, and the DXY index, which tracks dollar strength, has already accumulated a decline of over 2% in the past three trading sessions.
Neutrality Increases
At the moment, EUR/USD has been testing the key barrier at 1.04061, which aligns with the 50-period moving average and the Ichimoku cloud resistance in the short term.
Additionally, the TRIX indicator line has oscillated toward the neutral 0 level, reflecting a state of equilibrium in the average of recent market movements.
This key barrier and the neutrality observed in the TRIX suggest that the pair remains firmly in a neutral stance in the short term. As long as the price does not break away from the 1.04061 zone, it is unlikely that a clear trend will emerge in EUR/USD.
Key Levels:
As a reminder, if price movements continue hovering around the 1.04061 barrier, the current sideways range may still have room to extend further.
By Julian Pineda, CFA - Market Analyst
As a result, short-term dollar weakness has become evident, and the DXY index, which tracks dollar strength, has already accumulated a decline of over 2% in the past three trading sessions.
Neutrality Increases
At the moment, EUR/USD has been testing the key barrier at 1.04061, which aligns with the 50-period moving average and the Ichimoku cloud resistance in the short term.
Additionally, the TRIX indicator line has oscillated toward the neutral 0 level, reflecting a state of equilibrium in the average of recent market movements.
This key barrier and the neutrality observed in the TRIX suggest that the pair remains firmly in a neutral stance in the short term. As long as the price does not break away from the 1.04061 zone, it is unlikely that a clear trend will emerge in EUR/USD.
Key Levels:
- 1.05994: The most important resistance level in the short term, coinciding with the previous December highs. A breakout above this level would strengthen bullish momentum and increase the probability of a larger uptrend formation.
- 1.02290: A critical support level, marking the lowest point reached by the pair in the last two months. A bearish break below this level could restart the downtrend that had been in place since September 2024.
As a reminder, if price movements continue hovering around the 1.04061 barrier, the current sideways range may still have room to extend further.
By Julian Pineda, CFA - Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.