The EUR/USD pair opened at 1.04736 but quickly faced downward pressure, extending its recent losses. The pair reached a session high of 1.04893 early on but failed to sustain the momentum, eventually dropping to the day’s low of 1.04615 before bouncing modestly. As of now, the pair is trading around 1.04873.
Picture: EUR/USD rebounds from a low of 1.0461, finding support as it eyes resistance at 1.0490 amidst a cautious recovery, as seen on the VT Markets app.
The technical picture reflects a bearish bias. On the 15-minute chart, the pair remains below the moving averages (5, 10, and 30 periods), which are sloping downward, indicating a continuation of the recent sell-off. The MACD also suggests a bearish outlook, with the signal line and histogram pointing to sustained downward momentum.
The euro’s weakness can largely be attributed to dollar strength, underpinned by lower U.S. Treasury yields and cautious risk sentiment in the broader market.
Traders have turned defensive as geopolitical and macroeconomic uncertainties linger, prompting safe-haven flows into the greenback. Meanwhile, the euro remains pressured by weaker economic fundamentals in the Eurozone, adding to its struggles to break out of recent lows.
From a technical perspective, the area around 1.0460 is emerging as a key support level, with any break below likely opening the door to further declines toward the 1.0430 zone.
On the upside, the 1.05 handle serves as immediate resistance, followed by the recent high at 1.05548. A recovery beyond these levels would be needed to shift the bias toward a more neutral stance.
Looking ahead, market participants will likely focus on upcoming U.S. and Eurozone economic data to gauge the pair’s next moves.
See also: Dollar Index Holds Despite Market Caution
With EUR/USD flirting with multi-week lows, the pressure remains on the euro to reclaim ground, though the dollar’s dominance may limit any recovery attempts in the near term.
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