Euro / U.S. DollarShort
4-hr EUR/USD: 60 to 70 Pips Drop on the Short Run
For several months, the EUR has been trending downward, losing hundreds of pips. While occasional corrections to the upside occur, bears remain in control. The strong downward momentum is highlighted by the Death Cross pattern, a classic sell signal. Yesterday, we observed another correction, with EUR/USD retesting the 1.0350 level, aligning with the key 38.2% Fibonacci retracement. This level has often acted as strong resistance. A significant red candle on the 4-hour chart indicates heavy selling volume, and the overall downtrend suggests the pair may dip again toward the 1.0220 area, which previously served as a short-term turning point. This scenario is reinforced by robust U.S. economic indicators, such as strong NFPs and declining unemployment, which historically bolster the USD. However, if the pair breaks above 1.0350, short-term buying could push it higher, potentially retesting the 61.8% Fibonacci level around 1.0450.
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