EUR/USD Price Analysis: Bears Take Control as Dollar Gains Momentum
- Financial markets react to central banks’ announcements, impacting sentiment.
- US Initial Jobless Claims beat expectations at 233K, boosting Dollar demand.
- EUR/USD trend turns bearish, with potential for further decline.
The EUR/USD pair is currently trading at 1.0895, showing a lack of clear direction as market sentiment remains cautious. The US Dollar is seeing some buying interest ahead of the Wall Street opening, following a downturn in US indexes on Wednesday. Asian and European markets are also down, influencing US futures.
Concerns over upcoming central bank decisions and economic data are keeping investors on edge, leading to volatile market movements. The Eurozone did not release any significant data, while the US reported better-than-expected Initial Jobless Claims of 233K for the week ending August 2.
EUR/USD Technical Analysis: Short-Term Outlook
After the release of positive US employment data, the EUR/USD pair dropped below the 1.0900 level. Technical indicators show increased selling pressure, with the pair trading above key moving averages. However, a break below 1.0890 could lead to further declines.
On the 4-hour chart, the risk is tilted towards the downside as the pair struggles to stay above the 20 SMA. Negative technical indicators support the possibility of a further drop in prices.
Support levels: 1.0890, 1.0845, 1.0800
Resistance levels: 1.0950, 1.1005, 1.1045
Analysis: The EUR/USD pair is under pressure as the Dollar gains strength, impacting market sentiment. Investors are closely watching central bank announcements and economic data releases for clues on future policy decisions. Traders should monitor support and resistance levels to gauge potential price movements and adjust their trading strategies accordingly.