EUR/USD D1 chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
EUR/USD Struggles as Stronger US Dollar Dominates Amid Risk Aversion
The EUR/USD currency pair continues to face downward pressure, failing to maintain levels above 1.0600, primarily due to the broad-based strength of the US Dollar. Tuesday saw a surge in the Greenback’s value, driven by increased risk aversion in the financial markets.
US Dollar’s Resilience
The US Dollar index posted its highest daily close in months, surging past 106.10. This robust performance of the Greenback was supported by US yields, which remained near recent highs, with the 10-year yield hovering around 4.54%. Remarkably, even weaker-than-expected US economic data released on Tuesday, including New Home Sales falling to 675,000 in August (below the market consensus of 700,000) and a decline in the CB Consumer Confidence from 108.7 to 103, did not significantly dampen the Dollar’s strength.
Market Sentiment and Equity Decline
The US Dollar’s ascent was further fueled by declining equity prices in Wall Street, where the Dow Jones fell by 1.15% and the Nasdaq dropped by 1.54%. The deteriorating market sentiment prompted investors to seek refuge in the US Dollar, amplifying its rally.
Upcoming Economic Data
Market participants are now eagerly awaiting the release of Durable Goods Orders from the US on Wednesday. These data points will provide further insights into the health of the US economy and may influence the EUR/USD pair’s movements.
Crucial Reports Ahead
Looking ahead, traders will closely monitor key economic data releases. On Thursday, German and Spanish inflation data will be of particular interest, offering insights into the Eurozone’s economic conditions. Additionally, on Friday, the US is set to release the Core Personal Consumption Expenditure Index, a vital measure of consumer inflation closely watched by market participants. These upcoming reports will likely be pivotal in shaping trading decisions involving the EUR/USD pair.
Conclusion
The EUR/USD pair faces ongoing challenges as the US Dollar continues to assert its dominance, fueled by risk aversion and resilient US yields. The recent performance of the Greenback, along with the decline in equity markets, has created an environment where the Dollar remains the preferred safe-haven currency. With critical economic data on the horizon, traders will closely monitor these developments, looking for opportunities in the ever-evolving dynamics of the EUR/USD pair.
EUR/USD 2H Forex chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
Our preference
Short positions continuation with target at1.0540 in extension.
Disclaimer
The information and publications are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by FOREXN1.
🏆 ISOTRIUMPH 🏆
ISOTRIUMPH is an innovative Machine-Learning Indicator that boasts unbeatable performance! Specifically designed for TradingView to provide the best possible results in the market.
This is a Top-performing scalping indicator.
🔻 REVOLVER 🔺
REVOLVER is a unique and revolutionary Reversal Indicator designed to pinpoint the best turning point in the market and ride the trend until the very end.
- STATE.OF.ART TOOL FOR YOUR SUCCESS -
⚡️ ISOFOREX ⚡️
ISOFOREX is a MT4 and Tradingview chart indicator used to identify potential reversal signals in a financial markets.
Laser-Accurate trend indicator
Need HELP? Chat with our support or leave a message in the “contact us” section.
DISCLAIMER:
All material from forexn1.com is for educational purposes only. Trading foreign exchange carries a high level of risk and may not be suitable for all investors/traders. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Forexn1.com takes no responsibility for loss incurred as a result of our trading analysis\ideas\ insights. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a decision to follow\copy our trading course\analysis\ideas\insights on your own account. We have no knowledge of the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our analysis\ ideas\ insights or advice on forex related products on this website.