Technical Analysis USD/EUR: Euro Shows Signs of Volatility


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The USD/EUR has shown volatility this week, with its resistance level identified at 1.1000. Additionally, this level coincides with the 200-day moving average. If the euro surpasses If the euro surpasses this level, it could rise and possibly find support at 1.1150. If the euro drops, it could find support at 1.0800.

Core inflation, which does not take into account somewhat volatile items such as energy and food, held steady and only declined by 0.1 percent.

Europe and the rest of the world are waiting for the decisions to be taken by the Federal Reserve in the coming days and how this will impact the market, particularly its effects in Europe. Even more so when Germany is showing signs of a possible economic recession. In light of the uncertainty regarding the European Central Bank’s upcoming decisions, it is likely that the major currencies will experience a period of stagnation in the market, leading to little or no change in their prices for several days. The scenario may only change in the coming weeks if some external event produces a price catalyst in the market. Consequently, focusing on small, short-term investments is advisable, given that long-term investments demand greater momentum and consistent hedging to mitigate potential losses.

That said, the market is still looking for a clear and precise direction, but nothing is yet to be marked until the publication of the following US CPI data. The future movement of the USD/EUR pair is expected to hinge significantly on the behavior of the US currency.

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