EUR/USD turned lower after hitting multi-year highs!
How low will the pair go before the buyers step back in?
We’re watching a few key levels:
EUR/USD 4-hour Forex Chart by TradingView
In case you were too busy bingeing on Conclave, you should know that the U.S. dollar climbed on Tuesday as global trade prospects improved and Trump said he has “no intention” of firing Fed Chair Powell.
The euro also slipped, even after a quick pop higher when ECB President Lagarde suggested the rate-cut cycle might be nearly done, calling disinflation “nearing completion.”
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/USD, which touched multi-year highs on Monday, pulled back and is now hovering near 1.1385 after dipping to 1.1315.
We’re watching closely to see if buyers might step in around the 1.1300 level, where the S1 Pivot Point at 1.1294 lines up with the 38.2% Fibonacci retracement of April’s rally.
If selling pressure builds, EUR/USD could head lower toward the 1.1150 area, where the 61.8% Fib, the 100 SMA on the 4-hour chart, and a trend line that has held since March are hanging out.
A bounce from those levels could open the door for a move back to 1.1575 or even new 2025 highs. But if that trend line breaks, the pair might revisit previous areas of interest like 1.1000 or even 1.0900.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
