Eurusd Returns Back

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Eurusd Returns Back

Eur/Usd Returns Back To 1.0850 On Risk Off

EUR/USD has once again retreated lower and is now seen near the 1.0850 handle on Tuesday. Right now, the EUR/USD is deep in red mainly due to the higher demand for US Dollar.

But what's driving the demand for the US Dollar? It is the market's risk-off mood that has led investors to prefer to save haven assets such as the US dollar. The overall mood of the market is very cautious ahead of the key data releases and the earning reports.

Eur/Usd Faces Dynamic Resistance At 20 Sma

The technical analysis of EUR/USD shows that the bearish slide will continue in the short term. Right now, the EUR/USD is above all the big moving average lines, but the other indicators continue to show consistent bearish pressure.

In fact, a lot of momentum indicators have already approached their midlines which represents a trend shift. If we look at moving averages, the 20 SMA is above the 100 and 200 but lacks any direction. Additionally, the bullish slope of these lines is also fading, which means buyers are hesitant to buy on dips.

In the short-term, the H4 chart of EUR/USD shows that the risk is still titled towards the downside. Additionally, the 20 SMA is now serving as a resistance near the 1.0870 handle.

The important support levels for the EUR/USD are located at 1.0820 and then 1.0770. If these levels fail to stop the advance of the US Dollar, the next support for the Euro will be 1.0725.

On the upside, the next resistance levels are present at 1.0870, followed by the 1.0910 handle. After these two levels, the next one is around 1.0945.

As Tuesday's session unfolds, the US Dollar's advance towards the upside continues, which has sent the EUR/USD towards the 2-week lows near 1.0850.

Moreover, a lot of big names from the S&P 500 will also release their results this week. Right now, the stock markets are mostly mixed, but the sentiment is mostly positive ahead of the US elections.

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