Forex

EUR/USD Tanks As DXY Index Surpasses Weekly Highs

Published by

Written By: Abdullah Sarwar

Nov 30, 2023, 16:38 GMT 16:38

Summary:

EUR/USD is having a major pullback but the outlook on the forex pair remains positive. It needs to hold its 200 MA to stay bullish.

EUR/USD extended its losses on Thursday as the dollar strength index inched higher for the second consecutive day. The price action seems to be slightly surprising as the latest economic data pointed towards a much softer stance by the US Federal Reserve.

Consequently, the euro to dollar rate fell to 1.091 which was the fresh weekly low for the forex pair. The pullback comes after the pair rose to its highest level in almost four months earlier this week.

The latest technical analysis reveals that the ongoing pullback could be a good buying opportunity if EURUSD holds a key trendline on its chart. This trendline is the bottom of the ascending channel which is shown in the following chart.

As long as the DXY index remains below 105.7 points, the EUR/USD forecast will remain bullish overall unless the pair gains acceptance below the ascending channel. A major support on the daily timeframe is the 200 MA around 1.0816.

EUR/USD Technical Analysis

This post was last modified on Nov 30, 2023, 16:38 GMT 16:38

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.