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23/04/25
34
EUR/USD Slide: US Dollar Gains Pressure Euro Amid Market Uncertainty
The EUR/USD currency pair continued its downward trend for the second consecutive day, trading lower as the US Dollar (USD) recovers from a recent multi-year low. This downturn sees the pair sliding to a one-week low during the Asian trading session. Although there was a minor rebound from around the 1.1300 level, the pair is currently positioned near 1.1380, down over 0.35% for the day.
The strengthening of the US Dollar is a significant factor contributing to the downward pressure on the EUR/USD pair. Following a brief dip to a three-year low earlier in the week, the USD is gaining momentum. However, uncertainties regarding the US economy and expectations of more aggressive policy easing from the Federal Reserve are tempering the Dollar’s gains, which in turn limits the losses for the Euro against the Dollar.
Technically, the EUR/USD pair has shown some resistance below the crucial 23.6% Fibonacci retracement level, which was highlighted during the recent rally from the key 200-day Simple Moving Average (SMA). Additionally, indicators such as the Moving Average Convergence Divergence (MACD) point towards bullish trends, while the Relative Strength Index (RSI) has retreated from overbought levels, suggesting potential for a rebound.
Traders may find it prudent to wait for a sustained breach below the 1.1300 level to confirm any bearish sentiment in the market. If this support level fails, a deeper corrective decline could be expected, targeting the 1.1250 area, followed by the 1.1200 and 1.1160-1.1155 levels as key Fibonacci retracement points.
Conversely, the 1.1400 level has emerged as an immediate resistance, with additional hurdles anticipated around the 1.1425-1.1430 range. A continued upward movement may propel the EUR/USD pair past the psychological 1.1500 level, potentially allowing it to challenge its multi-year peak near 1.1575 reached earlier this month, with aspirations to reclaim the 1.1600 level.
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