EUR/USD has once again increased its strength. his fall yesterday, falling back until’à 1.0617, a threshold that had no longer been reached. touched since March, facing each other; a Dollar that has strengthened against most forex currencies the day after a more hawkish than expected Fed meeting. not to raise its rates on Wednesday evening, as widely anticipated, it left the door opened to an additional rate increase between now and the end of the year. In addition, forecasts from Fed members show that they only anticipate 3 rate hikes for next year, compared to 6 previously.
The dollar was also strong. reinforced Thursday by lower-than-expected weekly unemployment claims, which still testify to a weaker market. solid employment which could complicate the fight against inflation.
Looking ahead to Friday, the attention of traders interested in EUR/USD will turn first to Europe, with preliminary PMIs expected during in the morning, with the highlight being data for the entire euro zone expected at the end of the day. 10 a.m.
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Technical thresholds at monitor on EUR/USD
From a graphical point of view, the downward trend of EUR/USD is therefore still relevant, and further losses are not excluded for the last day of the week, although the pair is for the moment moved back to the 1.0650.
We can also see that the 50-day MA is rapidly approaching the 200-day MA. However, a crossing of the 50-day MA below the 200-day MA would constitute a key bearish signal; called “ death cross”, which could fuel a new phase of decline.
Moreover, we will note that the Dollar Index comes from its side; to validate the inverse signal, with its 50-day MA which has passed above its 200-day MA, a bullish signal called “ golden cross » and which could favor a continued rise in the Dollar, and therefore a fall in the EUR/USD.
If the Euro Dollar actually accentuates its losses, yesterday's low and the threshold of 1.06 will form the first support zone. Then, attention will turn directly to the 1.05 area. Finally, in the event of a rebound, 1.07 will be the first potential resistance, but only a return above 1.08 would start to break. invalidate the bearish fund bias.
EUR/USD: The immediate trend remains bearish ahead of a series of key indicators