(MENAFN- Daily Forex) Bearish view
Sell the EUR/USD pair and set a take-profit at 1.0665. Add a stop-loss at 1.0850. Timeline: 1-2 days.
Bullish view
Set a buy-stop at 1.0785 and a take-profit at 1.0850. Add a stop-loss at 1.0665.
The steep EUR/USD
exchange rate dive accelerated in the overnight session as the US dollar remained on track for its best month in two years. The pair plunged to a low of 1.0770, its lowest point since July 3, and
4% below the highest point this year.
Top
Forex Brokers1 Get Started 74% of retail CFD accounts lose money US dollar surge continues
The EUR/USD pair continued its strong downward trend as the US dollar index and American bond yields surged. The dollar index , which tracks the greenback against a basket of currencies, rose to $104.50, its highest point since July 2024.
US bond yields soared, with the ten-year rising to 4.24% and the two-year hitting 4.08%, the highest level since August 14.
This price action is mostly because of the potential divergence between the Federal Reserve and the European Central Bank (ECB). The recently released strong numbers from the US have pushed more investors to reassess the path of US interest rate cuts.
Analysts now expect the bank to go slow on its interest rate cuts. According to CME, the view is that the Fed will cut rates by 0.25% in its next meeting in November followed by a similar one in its December meerting. Some analysts, however, expect it to avoid cutting in the upcoming meeting.
The European Central Bank, on the other hand, has already slashed rates three times and is on a path for more cuts in the near term. Europe's inflation has fallen below the bank's 2.0% target, while the economy is not doing well.
The EUR/USD pair has also dropped as traders assess the results of the next American presidential election. Odds of Trump winning have risen, pushing more people to the safety of the greenback because of his threats for trade wars/USD technical analysis
The EUR/USD pair continued its downward trend in the overnight session as it plunged to a low of 1.0775, its lowest level since July 3rd. On the daily chart, the pair has moved below the third support of the Woodie pivot point .
It also dropped below the key support level at 1.100, its lowest point on September 11. The Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the oversold levels, pointing to more downward momentum.
Therefore, the EUR/USD exchange rate will likely continue falling as traders target the next key target at 1.0665, its lowest point on June 26.
Ready to trade our daily Forex signal ? Check out the best forex brokers in Europe worth using.
MENAFN24102024000131011023ID1108816549
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.