Eurusd Declines As Usd Shows Strength

Eurusd Declines As Usd Shows Strength by Andrew Blumer last updated on February 17, 2024

Eur/Usd Declines To 1.750 As Usd Shows Strength

EUR/USD has come under the eyes of the sellers, which have pushed the pair towards the 1.0750 area on Monday. After the Fed's clear message on no rate cuts at the next meeting, they will show strength across the board.

Combined with the NFP report and the bond yields, it makes sense for the EUR/USD to turn lower. The critical event that could affect the EUR/USD pair is the ISM Services PMI, which will reveal key details about the services sector.

Eur/Usd - Rsi Under 40 Level

The EUR/USD technical overview shows that the RSI is printing under 40. This is a sign that the EUR/USD still have more room for downside before moving into oversold territory.

Since the EUR/USD appears to be moving lower, the interim support that could stop this descent can be seen near 1.0700 and then at 1.0660.

The upside reveals that the nearest resistance is 1.0800, followed by the 1.0840 handle. If the EUR/USD changes side and starts showing a bullish trend, it could even touch 1.0870.

Remember, all these support levels can turn into resistance and vice versa - It all depends on which direction the EUR/USD takes next.

All of this raises the question of why EUR/USD dropped in the first place. It all started with the NFP release, which showed a blockbuster reading of 353K against the 180K forecast. This enabled the USD to gain ground against the EUR, GBP, and JPY.

After the release of the NFP, the odds of a March rate hike have touched a new low of 15%. Considering that the odds of this event were as high as 60-70%, it becomes clear why the greenback is cheering the current situation.

Amidst all this, Jerome Powell gave an interview to a media outlet in which he said they don't have the confidence to move into the rate cuts phase.