EUR/USD nears 1.1500 as Oil prices climb and market sentiment turns cautious
Euro Weakens Sharply as Safe-Haven Demand Lifts US Dollar
The Euro suffered a decline of over 0.5% against the US Dollar on Thursday, deepening its retreat from Wednesday’s peak of 1.1625 and touching new session lows just under 1.1520. Renewed concerns about the ongoing conflict in Iran have reignited risk aversion in the markets, prompting investors to favor the US Dollar and driving up Oil prices. This shift has placed additional strain on Eurozone economies, which rely heavily on energy imports.
On Wednesday, US President Donald Trump addressed the nation but did not specify a timeline for resolving the Iran conflict, contrary to widespread expectations. Instead, he maintained a confrontational stance and urged allied nations to “find the courage” to help secure the Strait of Hormuz. As a result, the optimism seen earlier in the week faded, leading to declines in equity markets while Oil prices and the US Dollar surged.
Technical Outlook: Downside Targets Focus on 1.1440
The EUR/USD pair’s rebound stalled on Wednesday at the underside of a previously broken bullish channel, just below 1.1630, reinforcing the prevailing downward trend.
Momentum indicators are also signaling weakness. The Moving Average Convergence Divergence (MACD) is nearing a bearish crossover below its signal line, indicating waning upward momentum. Meanwhile, the Relative Strength Index (RSI) has slipped beneath the 50 mark, suggesting a shift towards bearish territory.
The Euro’s swift decline has increased selling pressure toward the lows recorded on March 19 and 31, near 1.1440, with the March 13 trough at 1.1411 also in view. Should losses deepen, the 127.2% Fibonacci extension of the early March downturn points to 1.1327 as the next support. On the upside, immediate resistance is found at 1.1606, followed by the aforementioned trendline at 1.1630 and the March 23 high around 1.1640.
This technical analysis was prepared with the assistance of AI technology.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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