EUR/USD Correction Continues: Analyzing the Impact of Dollar...
EUR/USD Correction Continues: Analyzing the Impact of Dollar Strength
The EUR/USD pair faced further downward pressure, extending its correction from levels above 1.1017 and consolidating below the 20-day Simple Moving Average . This descent was primarily steered by a robust US Dollar performance, which managed to gain ground despite mixed US economic data and lower Treasury yields.
European Central Bank (ECB) representative Isabel Schnabel added to the euro's woes by indicating on Wednesday that inflation is declining more rapidly than anticipated, signaling a dim likelihood of another rate hike. This sentiment is widely shared among market participants, who are now bracing for a potential rate cut as early as the March meeting.
The downtrend in EUR/USD was driven by the strength of the US Dollar, even in the face of larger-than-expected declines in JOLTs Job Openings, suggesting a more balanced labor market. The surprise came with the ISM Services PMI, rising to 52.7 in November. As inflation decelerates and the labor market eases, the Federal Reserve (Fed) is increasingly perceived to have concluded its tightening cycle. Market sentiment leans towards anticipating rate cuts in 2024, a perspective not entirely echoed by Fed officials at present. Wednesday sees the release of the ADP Employment Report.
From a technical standpoint, the EUR/USD remains beneath the 20 SMA, indicating the potential continuation of a bearish trend. Traders are keenly observing these developments as they assess the broader market sentiment and prepare for potential trading opportunities in the coming sessions.
Our preference
Short positions with target at 1.07450
The EUR/USD pair faced further downward pressure, extending its correction from levels above 1.1017 and consolidating below the 20-day Simple Moving Average . This descent was primarily steered by a robust US Dollar performance, which managed to gain ground despite mixed US economic data and lower Treasury yields.
European Central Bank (ECB) representative Isabel Schnabel added to the euro's woes by indicating on Wednesday that inflation is declining more rapidly than anticipated, signaling a dim likelihood of another rate hike. This sentiment is widely shared among market participants, who are now bracing for a potential rate cut as early as the March meeting.
The downtrend in EUR/USD was driven by the strength of the US Dollar, even in the face of larger-than-expected declines in JOLTs Job Openings, suggesting a more balanced labor market. The surprise came with the ISM Services PMI, rising to 52.7 in November. As inflation decelerates and the labor market eases, the Federal Reserve (Fed) is increasingly perceived to have concluded its tightening cycle. Market sentiment leans towards anticipating rate cuts in 2024, a perspective not entirely echoed by Fed officials at present. Wednesday sees the release of the ADP Employment Report.
From a technical standpoint, the EUR/USD remains beneath the 20 SMA, indicating the potential continuation of a bearish trend. Traders are keenly observing these developments as they assess the broader market sentiment and prepare for potential trading opportunities in the coming sessions.
Our preference
Short positions with target at 1.07450
✅ TELEGRAM CHANNEL: t.me/+VECQWxY0YXKRXLod
🔥 UP to 4000$ BONUS: forexn1.com/broker/
🔥 USA ZERO SPREAD BROKER: forexn1.com/usa/
🟪 Instagram: instagram.com/forexn1_com/
🔥 UP to 4000$ BONUS: forexn1.com/broker/
🔥 USA ZERO SPREAD BROKER: forexn1.com/usa/
🟪 Instagram: instagram.com/forexn1_com/
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.