EUR/USD Approaching Key Support Level
Last week, the European Central Bank (ECB) cut interest rates as expected, marking the third reduction this year. According to Trading Economics, market participants speculate there could be another rate cut in December. This dovish stance is weakening the euro, as the ECB signals deteriorating economic prospects in the Eurozone.
In contrast, the U.S. dollar remains strong, supported by:
Robust economic data, including retail sales figures that exceeded expectations last week.
Expectations that Trump may win the next U.S. election, with his proposed trade and tax policies likely to support the dollar.
As a result, EUR/USD continued its decline last week, with the pair falling by about 2.5% since the start of October. Will the downtrend persist?
Today's technical analysis of the EUR/USD daily chart shows that the pair is approaching a key support line (marked in blue), connecting significant lows from 2023-2024 (highlighted by arrows).
Additional support may come from:
The psychological level of 1.0800;
A previous significant low near 1.0777.
Thus, the EUR/USD area formed by these lines could present challenges to the developing bearish trend.
Read more: https://fxopen.com/blog/en/oa-eur-usd-approaching-key-support-level/
Text source: Forex Trading Blog
