EURUSD | Before the FED 1.08 & After 1.102
The EUR/USD is holding around 1.0850 during the Friday American session, with the US dollar struggling to find demand. Critical support is located at the 50% Fibonacci retracement level of the October to December uptrend. If the cross falls below this level and uses it as resistance, it could find support at 1.0740 before reaching 1.0700. On the upside, immediate resistances are at 1.0830, 1.0865, and 1.0900. Following a negative close on Thursday, the EUR/USD extended its decline, touching the lowest level since mid-December below 1.0850. The short-term technical outlook suggests a buildup of bearish momentum, with potential further losses if the 1.0800 support gives way.
The European Central Bank (ECB) kept interest rates unchanged and expressed caution about rate cuts. Despite the initial resilience of the euro, the trend has been influenced by a risk-averse market environment, favoring the US dollar. Other data indicates that the US GDP growth exceeded analysts' estimates, further strengthening the dollar. The euro appears to have moved out of the 1.09-1.10 consolidation zone, with the possibility of a return to 1.08 before a potential recovery towards 1.10. A chart illustrates the possible movement and key zones. Wishing everyone a great weekend from Nicola.
The European Central Bank (ECB) kept interest rates unchanged and expressed caution about rate cuts. Despite the initial resilience of the euro, the trend has been influenced by a risk-averse market environment, favoring the US dollar. Other data indicates that the US GDP growth exceeded analysts' estimates, further strengthening the dollar. The euro appears to have moved out of the 1.09-1.10 consolidation zone, with the possibility of a return to 1.08 before a potential recovery towards 1.10. A chart illustrates the possible movement and key zones. Wishing everyone a great weekend from Nicola.
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