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EUR/USD falls to 0.9800 as US dollar strengthens before PMIs.

As bulls for the US dollar recover confidence, the EUR/USD pair is looking south around 0.9800. Treasury yields continue to hold on to recent gains despite a hawkish forecast from the Fed, which Powell eyed. The collapse of an ascending triangle on the 1D time frame predicts more price drops for the EUR/USD.

As we go closer to the early morning hours in Europe, the EUR/USD exchange rate is falling near 0.9800. This comes as the US dollar is breaking out of its consolidative mode and moving upward.

As the dust settles over the Fed’s aftermath, investors are getting ready for a flood of preliminary PMI readings from economies around the Euro area as well as the United States in the hopes of gaining new trade momentum. Given that it will be Fed Chair Jerome Powell’s first public appearance since Wednesday’s decision to raise interest rates, the speech that will take place later in the North American session will also steal the show.

In the meanwhile, rates on US Treasuries are maintaining their current increase, which is supporting dollar bulls while putting downward pressure on the major currency. In addition, the euro is still susceptible to attack in the aftermath of Russia’s resumption of its aggressive behavior.

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The mood on the market took a hit on Wednesday as Russian President Vladimir Putin declared a partial military mobilization in Ukraine. As a result, safe-haven prices for the dollar were bolstered.

Due to the conflict between Russia and Ukraine, Moscow has shut off the supply of natural gas to Europe. As a consequence, the old continent is on the verge of entering a recession. The impending PMI readings for manufacturing in the Eurozone and services might shed new insight on the state of the Union.

EUR/USD: The Current Technical Outlook

When looking at the daily chart for EUR/USD, the confirmed collapse of an ascending triangle that occurred after the Fed decision on Wednesday maintains the additional downside exposed towards 0.9750, which is a psychological threshold. However, before to it, a persistent breach below the 0.9800 level is required by the bears.

The Relative Strength Index (RSI) during the last 14 days continues to point in a negative direction, despite the fact that it is now located just above the oversold zone. This lends credibility to the possibility of another leg down to the downside.

Daily chart for the EUR/USD pair

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On the other hand, should the main effort to rebound, the high from Thursday, which was 0.9907, would be the first significant obstacle in the way.

Buyers will be put to the test if the price of the currency pair is able to close one day higher than the junction of the bearish 21-Daily Moving Average (DMA) and the triangle support-turned-resistance around 0.9970.

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