EURUSD → Fundamentally, the dollar is stronger

EURUSD is declining and forming an attempt to break trend support. Fundamentally, the DXY is strengthening on the background of the Fed's position, which negatively affects the base currency - EUR.

On the high timeframe we see that the dollar continues to strengthen after a long consolidation. The Fed is not going to give up and is trying to insure itself before a possible interest rate cut, which may come in spring-summer 2024. This scenario may strengthen the dollar to local highs, which will have a negative impact on the currency pair.
EURUSD broke 1.088 testing the trend support, technically, the breakout has already occurred, the price may take a small correction and retest the support, after which it may head towards the lower boundary of the range - 1.0756. Consolidation of the price below the trend support will confirm the bearish position, which will be a favorable scenario for sellers.

Support levels: 1.078, 1.0756
Resistance levels: 1.0888, 1.10

Fundamentally, the dollar is stronger than the euro, which will obviously have a negative impact on the currency pair. We expect confirmation of the scenario (consolidation below the support) for further opening of sales.

Regards R. Linda!

Comment:

Consolidation is forming after the support breakout.
Waiting for the formation of the impulse down...

Trade active