The EUR/USD pair faced challenges in its upward movement and continued to decline during early Thursday's Asian trading session. Escalating political tensions in the Israel-Hamas conflict and higher US Treasury bond yields exerted pressure on this currency pair. The EUR/USD exchange rate rose to 1.0595 and then retraced, forming a short-term double-top pattern. The downward move below 1.0560 confirmed this pattern, with the target now set at 1.0530. This pattern suggests that the pair might have reached a short-term peak. If the exchange rate breaks below 1.0520, it could further weaken the Euro, with a significant support level at 1.0500.
In terms of upward movement, the pair needs to reclaim 1.0565 to indicate another test of the crucial resistance level at 1.0595. Surpassing this level would pave the way for more profits, targeting 1.0630. The EUR/USD exchange rate fell below the 20-day Simple Moving Average (SMA) on Wednesday after facing resistance once again at 1.0600. The decline occurred as the US Dollar strengthened broadly, supported by deteriorating market sentiment and higher Treasury bond yields.
China's better-than-expected growth data initially uplifted market sentiment. However, the positive momentum didn't sustain as concerns about political tensions took center stage, weighing on risk appetite and boosting the US Dollar. Simultaneously, higher US Treasury bond yields provided additional impetus for the greenback. The yield on the 10-year Treasury bond rose to 4.92%, reaching its highest level since 2007.
On Thursday, US Unemployment Claims and the Philly Fed Index data are scheduled for release. Additionally, Federal Reserve Chair Powell is expected to speak at the New York Economic Club.
The EUR/USD exchange rate continues to reinforce its downtrend. Fundamental factors continue to support the US Dollar, limiting the potential for price increases and maintaining a downside risk bias for this currency pair. Stay tuned for further market developments as these factors continue to influence the EUR/USD exchange rate.
In terms of upward movement, the pair needs to reclaim 1.0565 to indicate another test of the crucial resistance level at 1.0595. Surpassing this level would pave the way for more profits, targeting 1.0630. The EUR/USD exchange rate fell below the 20-day Simple Moving Average (SMA) on Wednesday after facing resistance once again at 1.0600. The decline occurred as the US Dollar strengthened broadly, supported by deteriorating market sentiment and higher Treasury bond yields.
China's better-than-expected growth data initially uplifted market sentiment. However, the positive momentum didn't sustain as concerns about political tensions took center stage, weighing on risk appetite and boosting the US Dollar. Simultaneously, higher US Treasury bond yields provided additional impetus for the greenback. The yield on the 10-year Treasury bond rose to 4.92%, reaching its highest level since 2007.
On Thursday, US Unemployment Claims and the Philly Fed Index data are scheduled for release. Additionally, Federal Reserve Chair Powell is expected to speak at the New York Economic Club.
The EUR/USD exchange rate continues to reinforce its downtrend. Fundamental factors continue to support the US Dollar, limiting the potential for price increases and maintaining a downside risk bias for this currency pair. Stay tuned for further market developments as these factors continue to influence the EUR/USD exchange rate.
