EUR/USD Faces Decline as Market Sentiment Sours

EUR/USD Faces Decline as Market Sentiment Sours

On Wednesday, the EUR/USD currency pair is experiencing a decline, with the exchange rate slipping to 1.0525. The Euro (EUR) fell short of reaching the 1.0600 mark, as a shift in market sentiment has led to a broader decline.

A resurgence of risk-off market flows has sent the EUR on a downward trajectory against the US Dollar (USD). It has broken through the floor established during the previous day and is currently testing levels near 1.0520.

While there has been a slight recovery to 1.0540 in a relief pullback, the overall market sentiment remains bearish, and any upward momentum is expected to be limited.

Global tensions are escalating as the conflict in the Gaza Strip between Israel and Hamas continues to intensify. A recent rocket strike on a hospital in Gaza resulted in one of the highest civilian death tolls in recent history, with over 500 individuals seeking shelter in the hospital losing their lives due to the rocket strike. Both Israel and Hamas have blamed each other for the attack on the building.

From a technical perspective, the setup for the EUR/USD pair remains bearish, with the next target area for profit-taking identified at 1.0500.

Previous Idea :


Short-Term | Our preference

Short positions below 1.0640 with targets at 1.0500 & 1.0450 in extension.