EUR/USD slides to multi-month lows below 1.0650
EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.
The Relative Strength Index (RSI) indicator on the 4-hour chart dropped to 20, highlighting oversold conditions in the near term.
1.0700 (static level, former 2024-low support) aligns as first resistance for EUR/USD. In case the pair stabilizes above that level, 1.0730 (static level) and 1.0770 (static level) could be seen as next hurdles.
On the downside, 1.0660 (static level from November) could be seen as next support before 1.0600 (psychological level) and 1.0550 (static level from October).
The Euro is the 2nd most popular reserve currency in the world, behind only the US Dollar; and it is also the 2nd most commonly traded currency in the world. In March of 2013, with nearly €920 Billion in circulation, the EUR became the most circulated currency in the world.
ECB GOVERNING COUNCIL EXPLICITLY ADDRESSES THE POSSIBILITY OF A RATE CUT
While the ECB stated that there will be no pre-commitment regarding the timing of the first interest rate cut, there was a sign that interest rate cuts could materialise soon. The ECB statement read as follows, ‘if the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction”.
EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.
The Relative Strength Index (RSI) indicator on the 4-hour chart dropped to 20, highlighting oversold conditions in the near term.
1.0700 (static level, former 2024-low support) aligns as first resistance for EUR/USD. In case the pair stabilizes above that level, 1.0730 (static level) and 1.0770 (static level) could be seen as next hurdles.
On the downside, 1.0660 (static level from November) could be seen as next support before 1.0600 (psychological level) and 1.0550 (static level from October).
The Euro is the 2nd most popular reserve currency in the world, behind only the US Dollar; and it is also the 2nd most commonly traded currency in the world. In March of 2013, with nearly €920 Billion in circulation, the EUR became the most circulated currency in the world.
ECB GOVERNING COUNCIL EXPLICITLY ADDRESSES THE POSSIBILITY OF A RATE CUT
While the ECB stated that there will be no pre-commitment regarding the timing of the first interest rate cut, there was a sign that interest rate cuts could materialise soon. The ECB statement read as follows, ‘if the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction”.
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