EUR/USD: Bears Aim to Reclaim Control

Throughout the past week, we've observed moments of high volatility in the markets. In the foreign exchange market, the decisions made by the Central Banks, along with the data published on the European economy, have led to periods of increased volatility in the EUR/USD pair.

The pair eventually broke out of the upward channel we had identified in the previous week, and since then, sellers have managed to maintain control of the price. At this point, if the selling pressure continues, we cannot exclude the possibility of a new downward move towards the support zone marked at 1.072.

EUR/USD 4  hours time frame chart. Source: xStation 5

When we look at the U.S. dollar index, it becomes evident that the support zone around 102.364 played a significant role in supporting the USD's bullish momentum. However, at the moment, there are no technical factors that could offer new short-term perspectives.
Nonetheless, should the buying force persist, the upward trend might extend towards the previous highs recorded on February 13 of this year.

USD index. 4 hours time frame chart. Source: xStation 5
 

Forex Heatmap. Source: xStation 5

Henrique Tomé,
Analyst Portugal