- The EUR/USD initially tried to rally during Friday's trading session but faced some selling pressure above the 1.09 level.
- This area has been a key point of resistance in the past and could continue to cause trouble for the Euro.
- The 1.10 level has been even more resistant, and any attempts to break above it are likely to result in a drop.
- Therefore, it is probable that the Euro will face a lot of overhead pressure in the coming days and weeks.
However, if the Euro does manage to break above the 1.10 level, it could potentially go much higher. This would require a significant amount of effort and would likely require the US dollar to start falling against other currencies. But even if the Euro does face further selling pressure, there are several key areas where buyers may look to enter the market.
The first area of support is around the 1.08 level, which is a large, round, psychologically significant figure. If prices continue to fall, the 50-Day EMA will come into play near the 1.0733 level, followed by the 200-Day EMA just below the 1.06 level. These key levels could potentially offer support and attract buyers back into the market.
Euro is Likely to Remain Choppy
It is worth noting that the Euro is likely to remain choppy and volatile in the coming weeks, as the market is sensitive to a range of factors. One of the primary drivers for the Euro will be the rising interest rates in the United States. This is bullish for the US dollar and may continue to put pressure on the Euro.
Additionally, the Euro may be used as a proxy for the US Dollar Index, as investors look for safe havens during times of market volatility. The US dollar is often seen as a safe haven currency, and if investors become more risk-averse, they may shift their investments towards the US dollar.
Overall, while the Euro is facing overhead pressure, it is important to keep in mind that there are areas of potential support where buyers could return. Traders and investors should remain cautious and aware of key support and resistance levels. Additionally, market volatility is likely to remain high in the coming weeks, so it is important to stay on top of market developments and adjust trading strategies accordingly.
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