The US dollar is losing ground against the euro as speculation about the Federal Reserve’s actions mounts.

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The US Dollar fell against the Euro on Friday, primarily due to concerns that the Federal Reserve may pause interest rate hikes after a weak employment report. All eyes are on Federal Reserve Chairman Jerome Powell’s upcoming speeches, as they could significantly impact the markets. Meanwhile, European Central Bank (ECB) President Christine Lagarde’s hawkish comments may act as a buffer for the EURUSD pair, preventing a major drop.

From a technical perspective, if the EURUSD pair breaks below 1.0670, it could signal further declines. Key support levels include the 200-period EMA at 1.0620 and the 61.8% Fibonacci retracement level at 1.0607. Additionally, the MACD indicator suggests bearish momentum, but it’s essential to exercise caution as the market sentiment remains mixed.

Zooming out to a daily perspective, the 100- and 200-period EMA have formed a “death cross,” indicating a potential bearish trend. However, the MACD, which has crossed above the zero line, hints at a bullish sentiment. Traders should wait for a clear break above 1.0740 to signal a potential shift in momentum towards a bullish trend.

Please note that this material is for informational purposes only and should not be considered investment advice. All investments involve a level of risk, and past performance is not indicative of future results. Users are responsible for their investment decisions and should seek advice from a qualified financial professional.

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