Eurusd Remains Vulnerable Under Resistance

 Eurusd Remains Vulnerable Under Resistance

EUR/USD Remains Vulnerable Under 1.0900

The bearish pressure in the EUR/USD remains strong as the pair is trading under the 1.0900 handle. As there is no significant data release ahead, it means the US Dollar will stay supported against the Euro for the time being.

According to experts, the EUR/USD is facing a strong resistance that is present near the 1.0890 to 1.0900 range (10 pips). This level is important as the 100 SMA, along with the 23.6% fib retracement, are also present here.

So, for any hope of a bullish advance in the EUR/USD, the pair will need to cross this level and then retest it as a support. Once this has been achieved by the Euro bulls, the pair will attract support from the technical buyers.

EUR/USD Bulls Need To Cross 1.0900 Handle

In addition, it will also send the EUR/USD higher toward the upcoming levels, such as 1.0930, where the 50 SMA is located. Next up is the 1.100, which is both a static and psychological level & thus holds significant importance.

If we look at the downside, the nearest support is the 38.2% retracement located at the 1.0800 handle. After that, the EUR/USD bears will have to conquer the next support at 1.0750. The chances of further downside in the EUR/USD are very high unless the bulls reclaim the 1.0900.

Although the EUR/USD has started a fresh week, the bearish pressure is still lingering, which is keeping the pair below the 1.0900 handle.

The geopolitical tensions have escalated as of late, which is enabling the US Dollar to gain ground against riskier currencies. So that's also a factor that is allowing the EUR/USD to decline as a sign of US Dollar strength.

Looking ahead, the ECB president will be attending a session and will also deliver a speech in Paris. So that's also a factor that the EUR/USD traders will be closely looking to get some cues.

For now, the market is expecting the ECB to go into rate cuts mode, but the comments from the ECB officials suggest otherwise. So, if the ECB president gives hawkish signals, we will see the appreciation of the EUR/USD.

On the US side, October's factory order data is due for release, which will most likely be a non-event given the current market circumstances.

Trending Stories