Mon. May 20th, 2024

EUR/USD DIVES TO FRESH FIVE-MONTH LOWS NEAR 1.0600 

EUR/USD DIVES TO FRESH FIVE-MONTH LOWS NEAR 1.0600EUR/USD DIVES TO FRESH FIVE-MONTH LOWS NEAR 1.0600

The pair EUR/USD is on track to its weakest weekly performance in more than one year.

The Euro has been falling like a stone over the last two days, crushed by the combination of a hawkish Federal Reserve and a dovish European Central Bank.

The pair has lost nearly 2% in the last three days and is set to close its worst weekly performance in more than one year.

The ECB left rates unchanged at the 4% level in a contested decision, as some committee members were in favour of a rate cut.

This, and the dovish tilt on the monetary statement has boosted expectations that the bank will start easing its monetary policy soon. Investors have marked June in their calendars.

This would put the ECB on the unprecedented position of shifting its monetary policy ahead of the Federal Reserve.

The Fed is in a polar opposite, as the shock of the US inflation and the strong macroeconomic data is forcing the bank to dial down its monetary easing plans.

In this scenario, it is difficult to see any support for the Euro. The pair might see some correction from strongly oversold levels on intra-day charts, although upside attempts are expected to be limited.

Supports are 1.0630 and 1.0525. Resistances lie at 1.0725 and 1.0755.

EUR/USD

Overview
Today last price1.0642
Today Daily Change-0.0084
Today Daily Change %-0.78
Today daily open1.0726
Trends
Daily SMA201.0825
Daily SMA501.0826
Daily SMA1001.087
Daily SMA2001.0831
Levels
Previous Daily High1.0757
Previous Daily Low1.0699
Previous Weekly High1.0876
Previous Weekly Low1.0725
Previous Monthly High1.0981
Previous Monthly Low1.0768
Daily Fibonacci 38.2%1.0721
Daily Fibonacci 61.8%1.0735
Daily Pivot Point S11.0698
Daily Pivot Point S21.067
Daily Pivot Point S31.064
Daily Pivot Point R11.0755
Daily Pivot Point R21.0785
Daily Pivot Point R31.0813

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