EUR/USD Analysis

• 06 March, 2024 Ruchit Thakur

EUR/USD Analysis

Evening Update: Will the EUR/USD pair continue to fall or rebound from its current level of 1.0900 ?

The EUR/USD pair is trading below the 200 DMA on the weekly chart, having encountered significant resistance near the 1.1150 level. Since EUR/USD is 58% weighted in DXY, the decline in EUR/USD was mostly caused by the Dollar Index's swift recovery. As we noted in our analysis, the Dollar Index was trading within a strong support zone of 100.50-100.80 before rapidly surging. 

• Following a significant drop, the EUR/USD slipped below the 200 DMA. 
• The chart reveals that the trendline and the 200 DMA have both aggressively rejected the EUR/USD pair; as a result, the price is projected to fall to 1.0500 and 1.0350.
• The weekly chart's 200 DMA is approaching 1.1150, where it will meet trendline resistance, implying additional losses in the EUR/USD market.

The accompanying chart shows the EUR/USD's resistance and position relative to the weekly 200 DMA. The EURUSD has fallen dramatically, trading at 1.0900, with trendline resistance at 1.1150. We predicted in our DXY research that the Dollar Index would rise beyond its current trading range of 100.50 to 100.80, which acts as a solid support zone. Because EUR/USD and the Dollar Index are negatively correlated, rising DXY causes EUR/USD to fall, and vice versa. As a result, the DXY gain accounted for the majority of the EUR/USD decline.

The EUR/USD pair might fall considerably further, with the 1.0700 and 1.0500 levels adding support to any loss. As previously said, the EUR/USD and Dollar Index are inversely connected, therefore DXY might rise to 105.50 and 107.00, respectively. Because the EUR/USD is weak and falling, any rise gives a selling opportunity. 

Please study the EUR/USD's weekly support and resistance levels. Spot charts are used to represent each level.