Nov 22, 2024 (MENAFN via COMTEX) --
(MENAFN - Daily Forex)
Since the beginning of this week, the EUR/USD currency pair has been attempting to recover from its year-low, but rebound gains have not exceeded the 1.0609 level. It is currently stabilizing around 1.0548 at the time of writing this analysis. Trump's trade, along with European political concerns, is still affecting the EUR/USD gains.
Reasons for the Continued Decline of EUR/USD
According to reliable trading platforms, the EUR/USD price is still stable on the threshold of the psychological support of 1.0500, the lowest for the currency pair since October of last year. Also, due to several pressure factors, the most prominent of which is the strength of the
US dollar since Trump won the US presidential elections, which is known for its trade hostility. Moreover, the euro zone is recovering with increased exports. This is in addition to the divergence in monetary policy between the US Federal Reserve, which hinted at calming down the rate cuts, and the opposite of the European Central Bank's policy.
Also, the pressure on the euro is due to the escalation of tensions between Russia and Ukraine, and concerns about negative risks to the eurozone economy. According to the latest events, it was recently announced that Ukraine launched British cruise missiles at Russia for the first time in a dangerous development of the war that threatens to expand and continue.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money European Central Bank Policy and Regional Tensions
The escalation of the war between Russia and Ukraine will remain a factor of concern for the eurozone. Amid these concerns, the European Central Bank highlighted in its annual financial stability report that rising geopolitical tensions and political uncertainty are amplifying sovereign vulnerabilities. Meanwhile, rising global trade tensions increase the likelihood of negative economic shocks. According to the results of the economic calendar data recently, it was announced that wages in the eurozone rose by 5.4% year-on-year in the third quarter, the largest rate since the introduction of the euro, which complicated the European Central Bank's plans to cut interest rates. In general, the central bank is still expected to provide its fourth interest rate cut by 25 basis points in December stocks may witness selling
According to stock trading platforms, US stock futures declined today, Thursday, as investors reacted to the long-awaited earnings report from Nvidia. Despite the company beating quarterly expectations and issuing strong forward guidance, Nvidia's stock fell by more than 2% in after-hours trading. Obviously, this decline came as investors had hoped for bigger surprises, given Nvidia's dominant role in the AI-driven market rally. According to yesterday's trading, the Dow Jones Industrial Average rose 0.32%, the S&P 500 closed flat. Also, the Nasdaq Composite fell 0.11%. These moves were driven by mixed earnings reports and rising geopolitical concerns.
EURUSD Chart by TradingViewEUR/USD Analysis Today:
According to the daily chart, the overall trend for the EUR/USD pair remains on a downward trajectory, with the 1.0500 support remaining key to keep the bears in control. Dear reader, it must be taken into consideration that the recent trading sessions formed a gathering area in narrow ranges on the chart, which may herald a strong upcoming move in one of the two directions. So far, the strongest expectations are still bearish due to several factors listed above, and the exacerbation of these factors will support a stronger bearish move. Currently, the closest support levels for the euro and dollar are 1.0500, 1.0455, and 1.0380, respectively.
On the other hand, and for the same period of time, the resistance levels of 1.0675 and 1.0800 will remain the most important to break the current downward trend and start a new shift. Today, investors will focus on economic data, including US initial unemployment claims and US existing home sales figures. In addition, more insights are expected from more comments by members of the US Federal Reserve/USD Trading Signals:
If the EUR/USD moves below the 1.0500 support level, technical indicators will move towards strong oversold levels, and you can take buy trades but without taking risks and activating take-profit and stop-loss orders to ensure the safety of your trading account from any price reversals. You can consider buying from support levels of 1.0440 and 1.0370, respectively. In case of a sell signals, it can be from the resistance of 1.0666.
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