EUR/USD's Double Bottom Amid Dollar's Recovery
Updated
EUR/USD's Double Bottom Amid Dollar's Recovery
EUR/USD pair experienced notable turbulence, diving close to the 1.0800 mark as the US Dollar staged a robust recovery. The European session on Tuesday witnessed fresh selling pressure, propelled by a resurgent US Dollar and dovish remarks from ECB official Schnabel. As investors grappled with broad risk aversion, the pair faced headwinds, setting the stage for a pivotal juncture ahead of key US economic data.
Market Movement and Technical Analysis:
The EUR/USD's encounter with the 1.0800 level marked a significant low, emphasizing the strength of the US Dollar resurgence. However, a notable twist occurred as the price attracted buyers during the morning session, forming what appears to be a potential double bottom with the emergence of a green bar. Despite this, caution prevails, and the EUR/USD has, for the moment, found itself at its lowest point in three weeks.
Technical analysts are closely eyeing the crucial 1.0900 level; the pair's ability to stabilize above this threshold will determine its resilience against further downward pressure. Should the EUR/USD fail to establish a foothold beyond 1.0900, the prospect of continued interest from technical sellers looms large.
Key Drivers and Economic Indicators:
The economic calendar is poised to play a pivotal role in shaping the near-term trajectory of the EUR/USD pair. Today's focus revolves around two critical indicators in the US economic docket: JOLTS Job Openings data for October and the ISM Services PMI for November. Analysts are particularly attentive to the job openings figure, as a substantial decrease could challenge the US Dollar's ongoing strength.
Forecasts and Future Scenarios:
As of now, the forecast for the EUR/USD remains bearish, with analysts eyeing a potential retest of the previous resistance area denoted by the red rectangle. This zone aligns with the 50 and 61.8% Fibonacci levels, suggesting a scenario where the pair may retreat towards the lower end of the chart. The critical juncture lies at the 1.0800 mark, and a breach could open the doors to the 1.07800 territory.
Our preference
Short positions targets at 1.0800 & 1.0780 in extension.
EUR/USD pair experienced notable turbulence, diving close to the 1.0800 mark as the US Dollar staged a robust recovery. The European session on Tuesday witnessed fresh selling pressure, propelled by a resurgent US Dollar and dovish remarks from ECB official Schnabel. As investors grappled with broad risk aversion, the pair faced headwinds, setting the stage for a pivotal juncture ahead of key US economic data.
Market Movement and Technical Analysis:
The EUR/USD's encounter with the 1.0800 level marked a significant low, emphasizing the strength of the US Dollar resurgence. However, a notable twist occurred as the price attracted buyers during the morning session, forming what appears to be a potential double bottom with the emergence of a green bar. Despite this, caution prevails, and the EUR/USD has, for the moment, found itself at its lowest point in three weeks.
Technical analysts are closely eyeing the crucial 1.0900 level; the pair's ability to stabilize above this threshold will determine its resilience against further downward pressure. Should the EUR/USD fail to establish a foothold beyond 1.0900, the prospect of continued interest from technical sellers looms large.
Key Drivers and Economic Indicators:
The economic calendar is poised to play a pivotal role in shaping the near-term trajectory of the EUR/USD pair. Today's focus revolves around two critical indicators in the US economic docket: JOLTS Job Openings data for October and the ISM Services PMI for November. Analysts are particularly attentive to the job openings figure, as a substantial decrease could challenge the US Dollar's ongoing strength.
Forecasts and Future Scenarios:
As of now, the forecast for the EUR/USD remains bearish, with analysts eyeing a potential retest of the previous resistance area denoted by the red rectangle. This zone aligns with the 50 and 61.8% Fibonacci levels, suggesting a scenario where the pair may retreat towards the lower end of the chart. The critical juncture lies at the 1.0800 mark, and a breach could open the doors to the 1.07800 territory.
Our preference
Short positions targets at 1.0800 & 1.0780 in extension.
Note
Trade closed: target reached
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