Euro/USD drops to multi-month low as US Dollar rallies
- EUR/USD dropped to a fresh multi-month low early Wednesday.
- The US Dollar rallied on news of Donald Trump retaking battleground states.
- The technical outlook suggests that the bearish bias remains intact.
EUR/USD faced significant bearish pressure during Asian trading hours on Wednesday, reaching its lowest level since late June near 1.0700. Despite a partial recovery, the pair remains over 1% down for the day, trading below 1.0800.
Euro Price This Week
The table below shows the percentage change of Euro (EUR) against major currencies this week. Euro was weakest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.66% | 0.08% | 1.20% | -0.18% | -0.35% | 0.36% | 0.77% |
News of Donald Trump reclaiming battleground states Georgia and North Carolina led to a US Dollar (USD) rally early Wednesday. With Pennsylvania also secured, Trump’s victory seems imminent, with 267 of the 270 electoral votes needed. The USD was further supported by a nearly 3% increase in the benchmark 10-year US Treasury bond yield.
USD Technical Analysis
The Relative Strength Index (RSI) on the 4-hour chart indicates a bearish outlook, with first support at 1.0700, followed by 1.0670 and 1.0600. A clear above 1.0800 could signal a shift, with the 200-day SMA at 1.0870 as a significant resistance.
Euro FAQs
The Euro, used by 19 EU countries in the Eurozone, is the second most traded currency globally. The European Central Bank (ECB) in Frankfurt manages Eurozone monetary policy. Factors affecting the Euro include inflation data, economic indicators, and trade balance.
Analysis:
The EUR/USD pair’s decline to multi-month lows due to US Dollar strength reflects market sentiment favoring the greenback amid US election developments. The technical analysis indicates a bearish outlook for EUR/USD, with key levels to watch for potential reversals. Understanding the impact of geopolitical events on currency pairs and the role of central banks in currency valuation is crucial for investors and traders. Keeping track of economic indicators and trade balances can provide insights into currency movements and potential trading opportunities. Stay informed and leverage analysis to make informed decisions in the dynamic forex market.