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In the European morning on Friday, the EUR/USD currency pair found itself in a defensive stance, trading below the crucial 1.0600 level. Geopolitical tensions weigh on EUR/USD as the ongoing conflict has given rise to a resurgence in demand for the safe-haven US Dollar, suppressing the Euro’s strength in the forex market. However, the downside appears to be contained. This is due to the retreat in US bond yields, offering respite to EUR/USD traders.
Geopolitical Tensions Weigh on EUR/USD
Over the last four days, the EUR/USD pair has made gains on three separate occasions. It has also managed to stay above the 20-day Simple Moving Average (SMA). Geopolitical tensions weigh on EUR/USD. On the daily chart, technical indicators are offering some bullish signals, with the Relative Strength Index (RSI) trending higher and Momentum crossing above the 100 mark. However, market analysts suggest that a daily close above the 1.0640 level could pave the way for further upward momentum. Conversely, should the pair slip below the 1.0500 mark, it may signal additional weakness in the days ahead.
Short-Term Analysis and Key Resistance
On the 4-hour chart, geopolitical tensions weigh on EUR/USD. The pair exhibits a distinct bullish bias, with favorable technical indicators. Furthermore, traders may anticipate sustained gains as long as the EUR/USD pair maintains its position above the 1.0555 level. Nevertheless, a decline below this crucial level could potentially lead to a test of the 1.0530 support. This could signal the end of the current upward trend.
EUR/USD :Key Resistance and Future Potential
At present, the spotlight is on the key resistance level located at 1.0630, a horizontal resistance level as well as a downtrend line. Geopolitical tensions weigh on EUR/USD in this particular zone, which is currently acting as a formidable barrier, inhibiting further gains. In the event that the EUR/USD pair can consolidate above this level, it may open the door for additional upside potential, with an initial target set at 1.0675.
In this dynamic forex landscape, traders closely monitor geopolitical developments. These factors are likely to influence the EUR/USD in future sessions.
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Disclaimer:
Please note that this article serves solely for informational purposes. Thus, must not construe as financial advice. We advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
