The Euro continued its downward trend against the US Dollar on Monday, struggling to break above the immediate resistance level of 1.0870. The market remains bearish as investors anticipate further interest rate cuts by the European Central Bank (ECB).
Key Factors:
- ECB Rate Cuts: Expectations for additional ECB rate cuts are weighing on the Euro.
- US Dollar Strength: The US Dollar’s strength, driven by a less aggressive Federal Reserve and positive economic data, is also putting pressure on the Euro.
- Geopolitical Uncertainty: The upcoming US presidential elections and geopolitical tensions in the Middle East could further impact the Euro.
Technical Analysis:
- The EUR/USD pair is currently trading below the 200-day Exponential Moving Average (EMA).
- The 14-day Relative Strength Index (RSI) is in oversold conditions, suggesting potential for a short-term rebound.
- Key support and resistance levels include 1.0800, 1.0750, and 1.1000.
