Vasilis Tsaprounis
Independent Analyst
The single European currency is trading near the 1,0650 levels having reacted slightly after being temporarily pressured in the early hours of Friday in the wake of Israel's limited-range attack on Iranian soil.
Τhe European currency found itself again a breath away from the level of 1,06 which, however, so far has not managed to break it.
The behavior of the exchange rate during yesterday's day confirmed my thought as expressed in yesterday's article as indeed the European currency was once again put into question and could not break the 1,07 level upwards.
But on the other hand, the European currency maintains significant resistance and although there are several catalysts on the table that currently favor the US currency, the euro does not seem willing to suffer major losses without a fight.
The stocks barometer index S&P suffered further losses and was well below 5,000 in the early morning hours as the Israel attack unfolded and risk aversion remains on the minds of many investors.
Today's agenda is quite poor and unless there are some special developments mainly on the geopolitical board the exchange rate is likely to remain in a narrow range of fluctuation.
The euro can keep trying to recover further but breaking the 1,07 level relatively easily and stay above it will be a tough task, while on the other hand even though the 1,06 level looks to be the next challenge, the USD may struggle to make it today.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.