EUR/USD Nears Weekly Low as US Dollar Gains on Election Caution
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EUR/USD Under Pressure Amid Rising Safe-Haven Demand
The EUR/USD pair continues its slide on Tuesday, nearing the weekly low of 1.0774 as cautious sentiment surrounding next week’s US elections bolsters demand for the US Dollar. Investors are positioning conservatively, with uncertainty over a potential policy shift if former President Donald Trump wins. This risk-aversion-driven move is putting additional weight on the Euro as the Dollar’s safe-haven appeal intensifies.
Technical Signals Point to Continued Downside
From a technical perspective, the daily and 4-hour charts indicate that sellers remain firmly in control of EUR/USD. The 20-day Simple Moving Average (SMA) has accelerated its decline, slipping beneath the 100 SMA and nearing the flat 200 SMA, a setup that typically signals further downside potential. In the 4-hour timeframe, the currency pair broke below the 20 SMA, which has flattened, while other moving averages continue to slope downwards, reinforcing bearish momentum. Short-term indicators are steeply declining below their midlines, suggesting sellers are not ready to relinquish their grip just yet.
Key Levels to Watch
For traders keeping a close eye on EUR/USD, the immediate support rests at 1.0755, with further levels at 1.0710 and 1.0667 should selling pressure intensify. Resistance levels sit above at 1.0820, 1.0865, and 1.0900, where any upward correction may face a challenge.
Outlook Ahead of Key US Data
This week’s macroeconomic calendar is packed with pivotal US data, starting with the Consumer Confidence Index expected to show a slight uptick from last month. Additionally, Friday’s Nonfarm Payrolls report is anticipated to add volatility to the pair. Should the data favor the Dollar, EUR/USD may continue its downtrend, particularly as market sentiment favors safe assets amid broader election-driven caution. With election jitters and bearish technicals at play, EUR/USD traders should monitor support levels closely, as the pair may remain under downward pressure in the days ahead.
The EUR/USD pair continues its slide on Tuesday, nearing the weekly low of 1.0774 as cautious sentiment surrounding next week’s US elections bolsters demand for the US Dollar. Investors are positioning conservatively, with uncertainty over a potential policy shift if former President Donald Trump wins. This risk-aversion-driven move is putting additional weight on the Euro as the Dollar’s safe-haven appeal intensifies.
Technical Signals Point to Continued Downside
From a technical perspective, the daily and 4-hour charts indicate that sellers remain firmly in control of EUR/USD. The 20-day Simple Moving Average (SMA) has accelerated its decline, slipping beneath the 100 SMA and nearing the flat 200 SMA, a setup that typically signals further downside potential. In the 4-hour timeframe, the currency pair broke below the 20 SMA, which has flattened, while other moving averages continue to slope downwards, reinforcing bearish momentum. Short-term indicators are steeply declining below their midlines, suggesting sellers are not ready to relinquish their grip just yet.
Key Levels to Watch
For traders keeping a close eye on EUR/USD, the immediate support rests at 1.0755, with further levels at 1.0710 and 1.0667 should selling pressure intensify. Resistance levels sit above at 1.0820, 1.0865, and 1.0900, where any upward correction may face a challenge.
Outlook Ahead of Key US Data
This week’s macroeconomic calendar is packed with pivotal US data, starting with the Consumer Confidence Index expected to show a slight uptick from last month. Additionally, Friday’s Nonfarm Payrolls report is anticipated to add volatility to the pair. Should the data favor the Dollar, EUR/USD may continue its downtrend, particularly as market sentiment favors safe assets amid broader election-driven caution. With election jitters and bearish technicals at play, EUR/USD traders should monitor support levels closely, as the pair may remain under downward pressure in the days ahead.