Euro Gains Ground Against US Dollar
EUR/USD is trading on a stronger note near 1.1095 in Monday’s Asian session, benefiting from the softer US Dollar. Investors are closely watching the US Federal Reserve (Fed) monetary policy meeting on Wednesday for signals on interest rate adjustments.
Positive Outlook for EUR/USD
- The pair maintains a positive outlook above the 100-period EMA.
- Bullish RSI indicator supports upward momentum.
Key Levels to Watch
- Immediate resistance at 1.1100-1.1105.
- Initial support at 1.1072.
Despite being capped under a descending trend channel on the four-hour chart, EUR/USD remains constructive as it holds above the key 100-period EMA. The RSI indicator suggests the path of least resistance is to the upside, with a break above the 1.1100-1.1105 zone potentially leading to a rally towards 1.1155 and 1.1200.
On the downside, support levels are at 1.1072 and 1.1061, with further downside potential towards 1.1026 and 1.0985.
Euro FAQs
Key Information About the Euro
- The Euro is the currency for 20 Eurozone countries.
- It is the second most traded currency in the world after the US Dollar.
- EUR/USD is the most traded currency pair globally.
European Central Bank (ECB) Role
- The ECB in Frankfurt, Germany, manages monetary policy for the Eurozone.
- It sets interest rates to maintain price stability.
- High interest rates benefit the Euro.
Economic Indicators Impacting the Euro
- Eurozone inflation data affects the Euro’s strength.
- Data releases like GDP, PMIs, and employment influence the currency.
- The Trade Balance indicator is also crucial for the Euro’s value.
Stay informed about these factors to understand the Euro’s movements in the currency markets.