EUR/USD Chart Fundamental and Technical Analysis for 29 August 2023
The EUR/USD exchange rate is currently trading at 1.0832, down from 1.0929 at the start of the day. The euro is under pressure due to a number of factors, including the ongoing uncertainty surrounding the European Central Bank's (ECB) monetary policy, the war in Ukraine, and the risk of a recession in the eurozone.
On the fundamental front, the ECB is facing a difficult task in balancing the need to control inflation with the need to support economic growth. The ECB is expected to raise interest rates in September, but the pace of tightening is likely to be gradual. This is because the ECB is concerned about the impact of higher interest rates on the eurozone economy.
The war in Ukraine is also weighing on the euro. The war has disrupted trade and investment, and it has also led to higher energy prices. These factors are contributing to inflation in the eurozone, which is already at a record high.
Finally, there is the risk of a recession in the eurozone. The eurozone economy is slowing down, and there are concerns that it could fall into recession if the war in Ukraine drags on.
From a technical perspective, the EUR/USD is trading below the 200-day moving average, which is a bearish signal. The exchange rate is also trading within a descending channel, which suggests that the downside trend is likely to continue.
However, there are some potential support levels that could hold the EUR/USD in check. The first support level is at 1.0800, which is the 50% Fibonacci retracement level of the recent rally. The second support level is at 1.0700, which is the psychological level of 1.07.
Overall, the EUR/USD is trading in a bearish trend. The exchange rate is likely to remain under pressure in the near term, but there are some potential support levels that could hold it in check.
I hope this post is helpful.
This analysis represents only my personal thoughts and knowledge at the date it is posted.
This analysis does not represent professional and/or financial advice.
You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content found on this profile before making any decisions based on such information.
Any feedback is encouraged and appreciated. Thank you and have a nice day!
The EUR/USD exchange rate is currently trading at 1.0832, down from 1.0929 at the start of the day. The euro is under pressure due to a number of factors, including the ongoing uncertainty surrounding the European Central Bank's (ECB) monetary policy, the war in Ukraine, and the risk of a recession in the eurozone.
On the fundamental front, the ECB is facing a difficult task in balancing the need to control inflation with the need to support economic growth. The ECB is expected to raise interest rates in September, but the pace of tightening is likely to be gradual. This is because the ECB is concerned about the impact of higher interest rates on the eurozone economy.
The war in Ukraine is also weighing on the euro. The war has disrupted trade and investment, and it has also led to higher energy prices. These factors are contributing to inflation in the eurozone, which is already at a record high.
Finally, there is the risk of a recession in the eurozone. The eurozone economy is slowing down, and there are concerns that it could fall into recession if the war in Ukraine drags on.
From a technical perspective, the EUR/USD is trading below the 200-day moving average, which is a bearish signal. The exchange rate is also trading within a descending channel, which suggests that the downside trend is likely to continue.
However, there are some potential support levels that could hold the EUR/USD in check. The first support level is at 1.0800, which is the 50% Fibonacci retracement level of the recent rally. The second support level is at 1.0700, which is the psychological level of 1.07.
Overall, the EUR/USD is trading in a bearish trend. The exchange rate is likely to remain under pressure in the near term, but there are some potential support levels that could hold it in check.
I hope this post is helpful.
This analysis represents only my personal thoughts and knowledge at the date it is posted.
This analysis does not represent professional and/or financial advice.
You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content found on this profile before making any decisions based on such information.
Any feedback is encouraged and appreciated. Thank you and have a nice day!
I hope this was helpful.
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
Trade wisely!
ymagnify.com/
This analysis represents my thoughts at the date it is posted.
This analysis does not represent professional and/or financial advice.
Trade wisely!
ymagnify.com/
