Euro Suddenly Weakens
EUR/USD was again under pressure from sellers during the Asian session this Friday, after moving in two directions the previous day. The pair briefly dipped below 1.1900, then bounced around 25 pips from its daily low. Currently, EUR/USD is in the 1.1920–1.1925 range, down around 0.35% for the day.
Pressure is coming from the US dollar, which has begun to strengthen again and is attempting to continue its recovery from the four-year low touched earlier this week. At the same time, the ECB has signaled growing concern about the euro's rapid strengthening against the dollar. These ECB concerns have added to the pressure on EUR/USD, as the market believes the central bank could become more "cautious" if the euro continues to rally.
From a technical perspective, a drop below the 100-hour SMA is considered a new sell signal, but the euro still appears quite resilient below 1.1900, having bounced from the 38.2% Fibonacci retracement area around 1.1892. The MACD indicator is starting to weaken, and the RSI is hovering around 42, indicating that the movement is still consolidating and requires caution. If the 1.1892 support level is broken, the 1.1832 area could become the next target; conversely, if it recovers, EUR/USD could test 1.1967. (az)
Source: Newsmaker.id
