EUR/USD pierced the 1.1000 level, further signaling a continued decline ahead.The EUR/USD pair traded has hit a low of 1.0885 – a level not seen since May 2020. Much of the shared currency’s losses can be attributed to the war going on at its borders. The Russian invasion of Ukraine is now on its ninth day, and regardless of two rounds of peace talks, Moscow has shelled Europe’s largest nuclear plant, Zaporizhzhia, on Friday. An explosion there could be as much as ten times worse than that in Chernobyl.
EUR/USD technical outlook.Having already pierced the psychologically significant 1.1000 level, the EUR/USD pair has now room to extend its slump to 1.0870, May 2020 monthly low. The weekly chart signals further declines ahead, as technical indicators head south almost vertically, and approach oversold readings. Meanwhile, the 20 SMA accelerated its slide below the longer ones, currently at around 1.1350.
The pair is oversold in the daily chart, without signs of exhaustion. Technical indicators keep heading firmly lower despite being at extreme levels as the pair develops over 300 pips below the nearest moving average. Corrective advances are possible, but sellers will likely take their chances on bounces.
The first line of technical resistance comes at 1.1030, followed by the 1.1100/20 price zone. Beyond the latter, the pair could near 1.1200 and still retain its long-term bearish stance. On the other hand, support comes in at the aforementioned 1.0870, while below it, 1.0760 is the next potential target for bears.
EUR/USD pair shows that market players were hardly expecting the sharp slide seen on Friday. Most analysts were not expecting the pair to piece the 1.1000 threshold, that’s why the pair is seen bullish in the three time-frame under study, although holding below 1.1200 on average.
According to the Overview chart, the risk is skewed to the downside in the near term, as the moving average heads firmly south at around 1.1000. On the other hand, the longer moving averages offer modest bearish slopes, as the range of possible targets is quite limited at around the 1.1000 figure.
EUR/USD remains under constant selling pressure near 1.0900.EUR/USD extended its daily slide and touched its weakest level in 22 months below 1.0900. The broad-based dollar strength continues to weigh heavily on the pair after the February jobs report showed that Nonfarm Payrolls rose by 678,000, beating the market forecast of 400,000 by a wide margin.
EUR/USD News .GBP/USD pushes lower toward 1.3200 on upbeat US NFP data.GBP/USD stays on the back foot in the American session on Friday and pushes lower toward 1.3200. The US Dollar Index is up more than 1% on the day after the US Bureau of Labor Statistics’ monthly report revealed that Nonfarm Payrolls increased by 678,000 in February, vs 400,000 expected.