Skip to content
EURUSD Back Towards Unchanged Level After Rising Stalls


The EURUSD correction is modest. Back to unchanged.

After the EURUSD

EUR/USD

The EUR/USD is the currency pair comprising the single currency of the European Union, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The rate of the pair indicates how many euros are needed to buy a dollar. For example, when EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why EUR/USD is the most popular trading pairCompared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world, behind the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is a staple of all brokerage offerings and often has some of the lowest spreads compared to other pairs. Ultimately, the currency trails the two most economical blocs in the world and sees the most volume for this reason. EUR/USD has a wide range of factors that influence its rates. On the Euro side, Eurozone economic data as well as internal bloc factors can easily impact rates. Even smaller member states can effectively weigh on the euro, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and at the Federal Reserve generally affect the EUR/ usd. Many examples include bailouts during the financial crisis, tax cuts under the Trump administration, and Covid-19 relief measures, among others.

The EUR/USD is the currency pair comprising the single currency of the European Union, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The rate of the pair indicates how many euros are needed to buy a dollar. For example, when EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why EUR/USD is the most popular trading pairCompared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world, behind the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is a staple of all brokerage offerings and often has some of the lowest spreads compared to other pairs. Ultimately, the currency trails the two most economical blocs in the world and sees the most volume for this reason. EUR/USD has a wide range of factors that influence its rates. On the Euro side, Eurozone economic data as well as internal bloc factors can easily impact rates. Even smaller member states can effectively weigh on the euro, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and at the Federal Reserve generally affect the EUR/ usd. Many examples include bailouts during the financial crisis, tax cuts under the Trump administration, and Covid-19 relief measures, among others.
Read this term fell within 14 pips of the first week low of January 2017 at 1.0339 yesterday, EURUSD corrected higher to hit a high of 1.04189 in the European morning session today .

However, over the past 5 hours, the price has since retraced the gains, and the pair is trading close to yesterday’s close level at 1.0380.

Today’s high price stalled ahead of the 38.2% retracement of the decline from Wednesday’s high to yesterday’s low. This retracement level comes in at 1.04383. Failure to reach the 38.2% retracement is not in favor of the buyers. This level of retracement is the minimum if the buyers want to regain more control.

Taking a broader look at the price action this week, the first 3 trading days of the week saw the EURUSD trading above and below the 100 and 200 hourly MAs near convergence ( blue and green lines). The market was trendless.

Finally on Wednesday, after a volatile session to the up and down after the CPI data, the price took a final dip below the 100/200 Converged Moving Averages, and worked its way towards the swing zone. lower between 1.04709 and 1.04904. On Thursday, this zone was breached causing selling pressure to build to the week’s low.

So overall, today’s correction higher from the near double bottom was a modest attempt by bulls to find a bottom. However, until price breaks 38.2% at 1.04383 (and eventually above the 1.04709 level as well), sellers have even more control. The bulls may be in play above the January 2017 low of 1.0339, but they are not exactly winners from a control standpoint.

Incidentally, a break below the 2017 low would take the EURUSD to its lowest level since 2002.

cnbctv18-forexlive

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.