Since the U.S. inflation data last Wednesday, the EUR/USD has depreciated for four consecutive days, falling by 2.42%.
Tensions in the Middle East and a strong U.S. Dollar Index (DXY) have contributed to this decline, which may be finding a potential buying zone.
The pair is currently trading around 1.063 at the time of writing this article.
The direction of the price this week remains uncertain. The EUR/USD is currently trading in a support zone (at the 61.8% Fibonacci level), but further declines cannot be ruled out given the ongoing conflict in the Middle East or continued strength in the DXY. The DXY directly influences the pair's exchange rate. On the other hand, the price is also near the support level of a triangular pattern, which suggests that after a few days of consolidation, buyers might gain confidence and push the pair toward the 1.09 resistance level indicated by the pattern.
**THIS IS NOT INVESTMENT ADVICE. EACH TRADER IS RESPONSIBLE FOR THEIR OWN TRADING DECISIONS AND RISK MANAGEMENT.**
Tensions in the Middle East and a strong U.S. Dollar Index (DXY) have contributed to this decline, which may be finding a potential buying zone.
The pair is currently trading around 1.063 at the time of writing this article.
The direction of the price this week remains uncertain. The EUR/USD is currently trading in a support zone (at the 61.8% Fibonacci level), but further declines cannot be ruled out given the ongoing conflict in the Middle East or continued strength in the DXY. The DXY directly influences the pair's exchange rate. On the other hand, the price is also near the support level of a triangular pattern, which suggests that after a few days of consolidation, buyers might gain confidence and push the pair toward the 1.09 resistance level indicated by the pattern.
**THIS IS NOT INVESTMENT ADVICE. EACH TRADER IS RESPONSIBLE FOR THEIR OWN TRADING DECISIONS AND RISK MANAGEMENT.**