Euro Dollar Deflates and falls below 1.0300
The price in euro and dollar at the end of the session of the Asia-Pacific region and the European broke through the key support of 1.0400, hitting the psychological level of 1.0300 in the shortest possible time, reached for the last time in December 2002. Now analysts fear that fiber may reach the next bearish target in the shortest possible time, but hope for a rebound.
There is a lot of movement, it has been decided, and not in the budget after Monday, the euro dollar is very calm because of the US Independence Day holiday, but trading volumes have returned to “normal”, and the future US dollar began to strengthen rapidly, bringing the DXY index over 106.00 points, the level reached in December 2002.
Black mood for the euro after the latest comments from ECB members
The situation is difficult for the euro, which is not finding demand, especially after the latest comments by European Central Bank officials Muller and de Guindos, who said on Monday, July 4, that a rate hike of only 25 basis points (0.25%) on July 21 would be the most appropriate.
As a result, these comments have led to a bad mood in the European market today, adding even more weight to the euro. It is a real shame for the single currency, because in the second quarter it stabilized due to the willingness of ECB officials to start a rate hike course in order to take measures against rising inflation, breaking the bearish trend that began in December 2020.
But the recent situation has shaken the soul and makes forex investors overestimate everything, and they are likely to change their approach.
As expected, the fiber price has just reached the psychological support of 1.0300, a level that was not touched back in December 2002. At the moment, the graphical positioning of the euro dollar is at a crucial moment; a close above 1.03 may lead to a short-term upward correction and allow the bulls to try to save it all.
On the contrary, a daily close below the previously mentioned level will be a confirmation of the final support violation, and fiber will aim to reach the first useful support represented by the intermediate target of 1.0250.