EUR/USD: Neutrality Dominates Movements Around the 1.0250 Zone

8 de jan.

The U.S. dollar continues to gain ground as the Fed remains firm in slowing down rate cuts. The interest rate differential of 4.5% from the Fed versus 3.15% from the ECB remains a key reason for the market's preference for the U.S. dollar in the short term.

1. Bearish Trend:

The trend in favor of the U.S. dollar remains intact since late September 2024. So far, there are no significant breaks above 1.04091 that would threaten the current bearish formation.

*RSI Divergence: Lower lows in price and higher lows in the RSI indicate a bullish divergence in the short term. This suggests an imbalance in selling pressure and the potential for upward corrections. Monitoring the nearby resistance at 1.0491 is critical for these upcoming oscillations.

*Key Levels:

1.04091: Nearby resistance that coincides with the bearish trendline. Potential upward corrections may stall at this level.
1.02517: Main short-term support, the lowest level seen in recent months. Breaks below this price could accelerate selling pressure.
1.06031: Key resistance, the December high. Oscillations around this level could jeopardize the current bearish trend.

-JP