The EUR/USD pair started the week under strong bearish pressure and slumped to its weakest level since July 2020 at 1.1263 on Wednesday as the greenback continued to gather strength on inflation fears. The pair then managed to stage a rebound and climbed toward 1.1400 on Thursday as the 10-year US Treasury bond yield began turning south in the second half of the week.
The market is most certainly oversold, so I am looking for shorter-term charts to giving idea as to when to sell again. As far as buying is concerned, I do not have any interest, but it is worth noting that the 1.16 level above being cleared would of course be a very bullish sign, but we are three handles away from there right now, so it is not even a thought at the moment. You can join a forex forum for getting all accurate forex currency pairs analysis.
On the other hand, EUR/USD dropped further to as low as 1.1249 last week but couldn’t clear 1.1289 long term fibonacci level yet. Initial bias remains neutral this week first. On the downside, break of 1.1249 and sustained trading below 1.1289 will carry larger bearish implications. Deeper fall would then be seen to 161.8% projection of 1.1908 to 1.1523 from 1.1691 at 1.1068 next. Nevertheless, break of 1.1384 minor resistance will now indicate short term bottoming, and turn bias back to the upside for rebound.
Inflation in the Euro Zone hit 4.1% in October, pushed up by higher energy costs, and is expected to stay above the ECB’s 2% target next year as suppliers strained by the pandemic cannot keep up with the reopening of the economy.
But Lagarde insisted the ECB should not react to the current inflation spike.
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