EUR/USD Forecast: Euro Bulls Eyeing 1.1000 Amid Dollar Weakness & Middle East Tensions
- US Treasury Yields Plummet on Rate Cut Speculation
- Middle East Tensions Fuel Risk Aversion, Weigh on USD
- EUR/USD Approaches 1.1000 Despite Overbought Conditions
The EUR/USD pair surged to multi-month highs near 1.1000 as concerns over the US economy triggered speculation of an unexpected rate cut by the Federal Reserve. The dollar faced selling pressure against European currencies and safe havens amid escalating tensions in the Middle East, with fears of a potential conflict overshadowing market sentiment.
US Treasury yields plummeted to fresh lows, with the 10-year note hitting a 52-week low of 3.67%, signaling growing investor unease. Meanwhile, the Eurozone PMI data showed slight improvement, while PPI figures came in line with expectations.
Looking ahead, the US session will bring key economic data releases, including the final S&P Global Services PMI and ISM non-manufacturing report.
Technical Analysis
The EUR/USD pair remains bullish, with strong momentum pushing it towards the 1.1000 resistance level. Despite overbought conditions, technical indicators suggest further upside potential in the near term.
Support: 1.0960, 1.0915, 1.0875
Resistance: 1.1005, 1.1040, 1.1085
Overall, the Euro’s strength and Dollar weakness, combined with geopolitical tensions, are likely to drive further gains in the EUR/USD pair, making it a potential opportunity for investors to capitalize on the current market dynamics.