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Potential Currency Weakness- Euro Technical Analysis

Potential Currency Weakness Ahead

Potential Currency Weakness Ahead: Analyzing Euro’s Recent Performance Against the US Dollar and British Pound.

Technical Update on EURO, EUR/USD, and EUR/GBP:

  • The Euro’s Near-Term Weakness Persists
  • EUR/USD Poised for Its Worst Week Since May?
  • EUR/GBP Primed for Ongoing Consolidation?

Let’s delve into the near-term technical outlook for these currency pairs.

Potential Currency Weakness Ahead – EUR/USD

The Euro continued its downward trajectory against the US Dollar, marking a 0.6 percent decline. This performance puts the single currency on track for its worst weekly showing since early May, with losses totaling 1.3 percent.

In the past 24 hours, prices closed below the critical March low of 1.0516. This breach exposes immediate support at the 100% Fibonacci extension, 1.0436. A further decline could shift focus towards the 123.6% Fibonacci level at 1.0315.

On the flip side, should there be a reversal, watch closely for the descending trendline originating from July, which could act as a formidable resistance, reinforcing the overall bearish sentiment. To surmount this, conquering the 61.8% Fibonacci level at 1.0631 is necessary.

EUR/GBP

The Euro may be gearing up for a potential decline against the British Pound. Examining the EUR/GBP seems to reject the resistance zone of 0.8658 – 0.8701, potentially setting the stage for a retreat towards the established support range of 0.8493 – 0.8519. The exchange rate has been consolidated between these two levels, displaying a lack of apparent directional movement.

This development follows a notable interaction with the 200-day Moving Average, resulting in a rejection. If the push lower materializes, focus immediately on the 0.861 inflection point. Simultaneously, the descending trendline stemming from February is maintaining its influence. Conversely, a breakthrough above the resistance zone could signify a more bullish outlook, with potential targets at the 61.8% Fibonacci retracement level at 0.8493.

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