The strong uprising of Euro-Dollar has continued in recent days in the midst of general weakness of the dollar and a general negative response to inconsistent messages about rates. Lower American inflation reduces the pressure on the Fed to uphold the rates, while recent comments from the ECB board of directors seem to reduce the risk of immediate cutbacks. As far as gold is concerned, but to a lesser extent, traders also look at reactions to the proposed -the fire between Russia and Ukraine.
The High of November 2024 around $ 1,094 could be a key zone of resistance that could resist testing, especially in the context of such aggressive profit in March to date and clear sales of both Bollinger tires and the slow stochastic. If the price spends there, $ 1.10 is a clear potential resistance.
The 100% monthly Fibonacci racement around $ 1.07 can act an important support in the near future, but the question is whether the price will fall so far before the FED meeting. Just like gold, it is potentially challenging for new buyers to find a good entry here; A fairly distant stop after arrival during a retracement would be less likely to be activated.
This article was submitted by Michael Stark, an analyst at Exent.
The opinions in this article are personally for the writer; They do not represent those of Exness. This is not a recommendation for acting.