EUR/USD feels the inevitable pull in direction of 1.0500 subsequent

There was a little bit of a wrestle after the US CPI report yesterday however finally, the greenback as soon as once more reigned supreme. EUR/USD noticed a break under the April low of 1.0601 and has now traded right down to contemporary lows for the yr. Because the dollar continues to run a rampage, it’s beginning to attract in a relatively crucial degree for EUR/USD within the greater image:

As seen from the above, the pair has been kind of caught inside a variety of 1.0500 to 1.1200 roughly because the begin of 2023.

As such, there appears to be an inevitable pull in direction of the 1.0500 mark now as sellers have confirmed their mettle at each different check because the begin of October buying and selling. The latest after all being the autumn under the April low of 1.0601, as talked about above.

Taking the technical backdrop above into consideration, it just about means we’re reaching a really, very crucial juncture in gauging the post-election greenback momentum.

A agency break under 1.0500 just isn’t just one to set off any additional declines in EUR/USD. However the spillover potential implies that it’s going to spur even additional positive factors within the greenback as we glance in direction of year-end.

There may be definitely robust arguments for that, as Adam identified right here. However are merchants going overboard in frontrunning the potential for the Trump commerce and tariffs? That is one thing to think about as nicely maybe.

For now, the momentum commerce is title of the sport in FX. Nevertheless, do not ignore the implications set out by key technical boundaries such because the one within the chart above. That will probably be very important in figuring out the energy and resolve of the greenback momentum we’re seeing now.

This text was written by Justin Low at www.ubaidahsan.com.



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