Could EUR/USD move towards this year's lows?

Today's session has been relatively quiet in the forex market, with the EUR/USD pair remains in the range.

4-hour time frame chart.

On the 4-hour chart, we can see that buyers are still struggling to break the upper limit of the range that coincides with the Fibonacci levels at 61.8%.

As long as the price remains below this zone, there is a possibility that we will see further bearish momentum for the Euro against the US Dollar.

EUR/USD, 4 hour time frame chart. Source: xStation

However, on the 1-hour chart, we can see that the divergence between the US dollar and the dollar index is increasing more and more, and a change in market sentiment could emerge in the medium to long term.

Dollar INDEX, Daily Time frame chart. Source: xStation 5

In the dollar index, we can see that the price is getting closer and closer to the uptrend line, which could indicate a new bullish momentum in the index if buyers are able to regain control of the price along the uptrend line.

During this session, CAD is leading the gains!

Source: currency-strength.com

Henrique Tomé, XTB Portugal