EUR/USD is experiencing a slight dip in the European morning session on Tuesday, following a climb above 1.1000 on Monday. The pair is currently trading below 1.0950 as investors keep a close eye on geopolitical developments amidst a lack of high-tier data releases.
With the US Dollar (USD) facing pressure due to escalating geopolitical tensions, the EUR/USD pair is struggling to maintain bullish momentum. The USD Index is hovering around 103.00 after a 0.5% decline on Monday, limiting the upside for EUR/USD.
In positive news, Germany reported a 3.9% increase in Factory Orders for June, surpassing market expectations. However, this data did not have a significant impact on the market. Later today, the US Trade Balance data for June will be released, but investors are likely to focus more on geopolitical headlines.
Looking ahead, it remains uncertain whether the USD will benefit from safe-haven flows if tensions escalate further. Technical analysis shows that 1.0900 is the immediate support level for EUR/USD, followed by 1.0870 and 1.0830. On the upside, resistance is seen at 1.0960 and 1.1000, with a potential target of 1.1060 if the pair closes above 1.1000.
Overall, the Relative Strength Index (RSI) on the 4-hour chart indicates a correction phase for EUR/USD while maintaining a bullish bias.
EUR/USD Price Changes This Week
The Euro (EUR) has shown strength against major currencies this week, particularly the British Pound. The table below displays the percentage changes in Euro value against other major currencies:
Euro FAQs: Understanding the Euro and its Impact on the Forex Market
The Euro is the currency used in the Eurozone, comprising 20 European Union countries. It is the second most traded currency globally, with EUR/USD being the most heavily traded currency pair. The European Central Bank (ECB) in Frankfurt manages monetary policy for the Eurozone, impacting the Euro’s value based on interest rate decisions and economic data.
Key economic indicators, such as inflation, GDP, and trade balance, influence the Euro’s performance in the forex market. Positive economic data strengthens the Euro, while negative data can lead to a decline. Understanding these factors can help traders navigate the EUR/USD currency pair effectively.