Targets:
- T1 = $1.11000
- T2 = $1.10000
Stop Levels:
- S1 = $1.12500
- S2 = $1.13000
**Wisdom of Professional Traders:**
This analysis synthesizes insights from thousands of professional traders and market experts, leveraging collective intelligence to identify high-probability trade setups. The wisdom of crowds principle suggests that aggregated market perspectives from experienced professionals often outperform individual forecasts, reducing cognitive biases and highlighting consensus opportunities in Euro.
**Key Insights:**
The Euro has been under pressure as the US Dollar gains strength, driven by a combination of rising Treasury yields and hawkish Federal Reserve tones. While the Eurozone continues to battle inflation with restrictive monetary policies from the ECB, the stronger-than-expected economic data from the United States is weighing heavily on EUR/USD. Additionally, geopolitical tensions within Europe and concerns over energy supply vulnerabilities remain a backdrop for Euro weakness.
**Recent Performance:**
The past week saw the Euro encounter formidable resistance at $1.12500. This failed breakout attempt has led to renewed selling momentum, dragging the pair closer to the $1.11500 support zone. Intra-day volatility has been dictated by news flows around the Federal Reserve's future rate trajectory and Eurozone PMI figures. The pair closed the week with a 0.45% loss, underscoring the Dollar’s dominance.
**Expert Analysis:**
Short-term technical indicators, including the RSI hovering near 45 and the MACD line below its signal line, confirm bearish momentum. A breach below $1.11500 would open a path toward $1.11000, with $1.10000 being a likely secondary target if dollar appreciation persists. Analysts suggest that Euro bulls are holding out for a dovish pivot from the Fed at upcoming meetings; until then, downside risks remain prominent.
**News Impact:**
Upcoming events to monitor include the Eurozone CPI release and the US Federal Reserve's minutes, which are expected to provide clearer policy direction. A continuation of strong US economic data could further widen the interest rate differential in favor of the dollar, sealing a bearish trend for EUR/USD. Energy pricing developments, particularly natural gas flows into Europe, will also be critical for market sentiment.
**Trading Recommendation:**
Based on the current economic and technical landscape, a short position on EUR/USD offers a strong risk/reward ratio. The USD’s momentum, coupled with weaker Eurozone fundamentals, solidifies the case for downside exploration. Traders are advised to set tight stops above $1.12500 to minimize risk and keep an eye on key support levels for potential profit-taking opportunities.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.