FX.co ★ berta.hill | EUR/USD

In my opinion, the EUR/USD market in the near future will continue to show a tendency to decline, despite local stabilization attempts. The current price near 1.16933 forms a zone of uncertainty, however, the fundamental background is gradually leaning in favor of the US dollar, which will put pressure on the euro. Recent signals from Bank of America indicate a tactical bullish view on the American currency, and this may strengthen as strong macroeconomic data is released from the United States. I expect the market to increasingly factor in the likelihood of Federal Reserve tightening, especially if the labor market remains stable. Even a partial rate hike can widen the interest rate differential between the United States and the European Union, where the European Central Bank is limited in tightening possibilities. This will create additional pressure on the pair. From a technical standpoint, resistance levels at 1.17173, 1.17385, and 1.17489 will act as significant barriers to growth, and each attempt to rise to these levels is likely to be used by market participants to open short positions. At the same time, support at 1.16761 is key for the short-term balance, and a breakthrough will open the path to 1.16548, where acceleration of the decline may occur. Therefore, in the near future, the price is likely to gradually decrease with possible corrective pullbacks upwards, but the overall direction will remain downwards.