Euro ticks up from six-week lows despite risk-averse markets, high Oil prices
The Euro (EUR) is ticking higher against the US Dollar (USD) on Monday, trading near 1.1635 at the time of writing, after hitting fresh six-week lows a few pips above 1.1600 earlier on the day. The pair is shrugging off the dismal market sentiment, although high Oil prices are likely to keep upside attempts in check.
Geopolitical tensions are simmering again following an attack on a nuclear plant in the United Arab Emirates on Sunday, allegedly by Iran or one of its allies. US President Donald Trump warned that “the clock is ticking” on Tehran, after meeting its national security team and speaking with Israeli Prime Minister Benjamin Netanyahu to discuss options in Iran.
With the ceasefire in tatters, hopes of reopening the key Strait of Hormuz dissipate, and Oil prices escalate. The Brent barrel is rising to levels near $110.00, and the WTI Oil stands above $100, levels that put Crude-importing Eurozone economies against the wall, and are likely to weigh on Euro recoveries.
Analysts at UOB bank expect the pair to remain vulnerable, aiming for the 1.1570 area: "While the decline is oversold, strong downward momentum continues to suggest downside risk for EUR. From here, a clear break below 1.1600 will shift the focus to 1.1570. We will maintain our negative EUR view as long as it holds below the ‘strong resistance’ at 1.1685.”
Technical Analysis: A dead cat's bounce for the Euro
The EUR/USD is ticking up on Monday but maintains a bearish near-term tone with price holding below a dense band of horizontal resistance clustered between 1.1650 and 1.1675. The 4-hour Moving Average Convergence Divergence (MACD) remains in negative territory, hinting that downside pressure persists, while the Relative Strength Index (RSI) has bounced from deeply oversold readings, suggesting that sellers remain in control.
Upside attempts are likely to find resistance in the mentioned area above 1.1650, which held bears in April. Bulls would need to breach that area to ease negative pressure and aim for the May 14 high and May 8 and 12 lows in the area of 1.1720
On the downside, initial support emerges at session highs near 1.1610. Further down, there is no clear support before the early April lows between 1.1505 and 1.1525.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Has the return on Amazon's massive AI capital expenditure been underestimated by the market?
Amazon is trading at 29 times expected earnings, lower than Walmart’s 37 times, even though its revenue growth rate is three times that of Walmart. This inversion reflects deep market concerns over whether AI capital expenditures will deliver as anticipated. AWS CEO Matt Garman revealed that AWS’s annual revenue has reached $160–170 billion, with a growth rate of 37%. Enterprise cloud migration, AI-native startups, and intelligent agent workflows are simultaneously driving three growth curves.
TSMC’s $2 Billion Silicon Interposer Order Given to GlobalFoundries, Key CoWoS Components to be Produced in the U.S. for the First Time
This move marks the official extension of a key link in the AI packaging supply chain to the United States. Analysis indicates that the five-year long-term contract reflects TSMC's strong long-term outlook for silicon interposer demand. Meanwhile, Taiwanese companies UMC and PSMC are actively expanding capacity to compete for orders, but this major order has been secured by GlobalFoundries, meaning that American production capacity will become a new factor in the silicon interposer market landscape over the next five years.
Gasoline Prices Rise in Tandem with Election Poll Trends! Goldman Sachs: With 26 Days Left Until the Midterm Election, Probability of a Democratic Sweep Rises to 65%
Goldman Sachs states that the probability of a Democratic sweep has risen to 65%, but polls in red states have historically overestimated their advantage; the rise and fall of oil prices is the decisive variable.
Crypto prices
More
