The EUR/USD pair suffered a sharp decline during last week's trading in the stock market Forex Because of the data of the European Central Bank, which postponed the interest rate hike to 2018, in addition to the data of the US Federal Reserve, which has already raised interest rates, causing the US dollar to rise very strongly against the basket of major currencies, to collapse the euro price to the lowest level in 14 years, touching the level Support 1.0364
The euro continued to fluctuate at the beginning of the week’s trading, which it started at the end of last week’s trading, to keep the euro trading close to its lowest level in 14 years. This comes in light of the rise in the US dollar and the increase in negative pressure on the euro in the forex markets.
On the other hand, the US dollar is trading near its highest level in 14 years against a basket of major currencies, which keeps negative pressure on the euro as a result of the inverse relationship between them, in addition to the widening difference in monetary policies between the Federal Bank and the European Central Bank.
The employment sector index in Germany witnessed an increase of 111 during the month of December, after the previous reading recorded a value of 110.4, and expectations indicated 110.7. This improvement in German data helped stabilize the euro levels at the beginning of this week's trading.
Technical outlook for the EUR/USD pair
The euro against the US dollar is trading at the price of 1.0400, where the price rebounded towards the bearish trend after it failed in the corrective rise to target the 23 Fibo line on the daily time frame, as shown in the graphic
The trades take place below the moving average indicator line, and both MACD and Stochastic are showing a negative crossover on the daily time frame, which means more downside in order to retest the previous support level at 1.0357
Therefore, it is expected that the EUR/USD will target the price level 1.0357, before we witness any corrective movement towards the upside again.
Support and resistance points for the EURUSD pair
the main points
R2 : 1.0591
S2 : 1.0310