Technical analysis of Euro trend, target level 1.11-11.1140
According to the latest technical analysis from Societe Generale, the rise of the euro against the US dollar may continue. Tanmay Purohit, a technical analyst at Societe Generale, said, "The EUR/USD has recently broken through a symmetrical triangle, indicating a return to upward momentum. This is also highlighted by the daily MACD indicator, which has been anchored in the positive zone since July.
As the EUR/USD broke through 1.10, the US dollar fell to a 7-month low.
Purohit said, "This trend is a bit far fetched, but there is currently no signal of a pullback. The 50 day moving average around 1.0880-1.0850 should be an important support level to prevent short-term declines
The weakening of the US dollar is the main factor driving the strengthening of the euro against the US dollar, as market expectations for rapid interest rate cuts by the Federal Reserve in the coming months continue to increase.
The market believes that the Federal Reserve will cut interest rates by up to 100 basis points this year. The downside risk for the euro against the US dollar is if the Federal Reserve disappoints and reduces interest rate cuts.
However, from a technical perspective, the decline of EUR/USD at this critical moment is limited.
Purohit said, "The next upward target for the EUR/USD is at 1.1100-1140, as well as the peak of 1.1275 in July 2023
According to Chris Turner, an analyst at Dutch International, if the EUR/USD breaks through 1.11, it may accelerate its rise.
EUR/USD daily chart
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