The euro-dollar fell during trading today, Friday, at the end of the week’s trading, recording its lowest level in three weeks, and this comes in light of the continued recovery in the levels of the US dollar, in addition to the negative pressure resulting from the political tension in the euro area, which helped the euro decline.
The decline of the euro-dollar today comes with the continued rise of the US dollar against the major currencies, and the euro-dollar pair traded at its highest level in two weeks, which increased negative pressure on the euro due to the inverse relationship between them, and this comes after the support that the US currency received from the statements of US President Donald Trump Regarding the imminent announcement of a plan to cut taxes on American companies.
On the other hand, we find that the approach of the French presidential elections, especially with the increasing chances of the right-wing party candidate, who announced the continuation of the war against globalization, in addition to her desire to hold a referendum for France to leave the European Union, increases tensions and fears in the financial markets to negatively affect the euro-dollar trading.
Today, the French industrial production index was released, the second largest economy in the eurozone, as the index declined during the month of January by 0.9%, after the previous reading had recorded a rise by 2.4%, which was revised from a high level of 2.2%, which increases the tension in Europe and pushes The euro fell further.
Technical outlook on the EUR/USD pair this week
The euro-dollar pair is trading at the level of 1.0636, as the price failed to breach the support level in conjunction with the presence of the Fibo line 38 on the four-hour time frame, as shown in the graphic
Trading is now taking place at the bottom of the average moving indicator line, and the MACD indicator shows a negative crossover towards the bearish trend, while the Stochastic indicator shows a negative crossover towards the bullish trend.
Which indicates that the bearish trend is still dominating the pair’s trading, and therefore the price is expected to witness further decline to target the level of 1.0583, in conjunction with the presence of the Fibo line 50