EUR/USD surged on Monday, reaching levels not seen since March above 1.0900 as the US Dollar faced heavy selling pressure. However, the risk-averse market environment may limit further gains for the pair in the near term.
Euro Price Performance in the Last 7 Days
The Euro has shown strength against major currencies in the last 7 days, with notable gains against the Australian Dollar. The table below illustrates the percentage change of Euro (EUR) against key currencies:
Key Insights:
- The disappointing US labor market data triggered a sharp decline in the US Dollar, with markets now pricing in a potential 50 basis points rate cut by the Federal Reserve in September.
- Geopolitical tensions, such as reports of Iran preparing to attack Israel, have led to a flight to safety among investors, impacting risk-sensitive assets.
- Market focus remains on the upcoming ISM Services PMI report for July, with expectations of a rise from the previous month.
Technical Analysis of EUR/USD
The Relative Strength Index (RSI) indicator suggests overbought conditions for EUR/USD, with key resistance levels at 1.1000, 1.1060, and 1.1100. On the downside, initial support lies at 1.0950, followed by 1.0900 and 1.0870.
Euro FAQs
Key Points:
- The Euro is the currency for 20 European Union countries and is the second most traded currency globally after the US Dollar.
- The European Central Bank (ECB) in Frankfurt manages monetary policy and aims to maintain price stability through interest rate decisions.
- Eurozone inflation data, economic indicators, and trade balance figures play crucial roles in influencing the Euro’s performance.
Stay informed about economic data releases and geopolitical developments to navigate the volatile market conditions effectively.