The monthly high point of the euro has fallen, but there is still potential for upward movement!
The EUR/USD has shaken off the tension caused by France and hit a high of 1.09 in over a month last Friday, entering a slight decline this week.
Market analyst Haresh Menghani stated that from a technical perspective, the EUR/USD has recently broken through the resistance of 1.0800 (including 50 day, 100 day, and 200 day simple moving averages) and the downward trend line, which is favorable for bullish traders. In addition, the oscillation indicators on the daily chart have been gaining positive traction, indicating that due to the dovish expectations of the Federal Reserve, there is little resistance to the upward movement of the euro against the US dollar.
He also pointed out that some subsequent buying above the 1.0910-1.0915 region will reaffirm a constructive outlook and push the euro dollar to the next resistance level near the 1.0960-1.0965 region. If it can continue to break through, the exchange rate is expected to return to the psychological level of 1.1000 for the first time since January.
On the other hand, if the euro experiences a substantial decline against the US dollar, it may attract new buyers near the resistance point of the downward trend line, i.e. around the 1.0870-1.0865 area. This should help limit the downward space around the EUR/USD support level of 1.0800. If it falls below 1.0800, the next support level will be around the 1.0755-1.0750 range. If it falls below this level area, it may cause the euro to drag below the 1.0700 mark against the US dollar, further falling towards the June low of 1.0665.
EUR/USD daily chart
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