EUR/USD Drops to Weekly Lows
EUR/USD - H1
The pair had a solid performance last week, as it has been trying to recover from a very bad November and the 2021 lows that this month brought.
However, as we pointed out yesterday, this effort has been slow and limited, with the broader trend staying clearly descending after the rejection of the 38.2% of the October/November drop.
Near-term bias is also tilted on the downside, since the common currency moves back below its EMA this week and faces intense pressure at the start of the European session today, conceding 1.1300.
The common currency is now vulnerable to the ascending trend-line form last month's 2021 lows (mid-1.1200s), but it may be early for fresh yearly lows (1.1184).
On the other hand. EUR/USD moves towards oversold levels and as such, it may be able to find support ahead of mid-1.1200s. This could result in a bounce back above the EMA100 (1.1340), but it does not inspire confidence for challenging 1.1380.
In any case, caution is need as we head to the end of the year due to the holiday trading conditions.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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