EUR/USD: King Dollar Comeback? Not So Fast, The Euro Is Set To Bounce At Critical Support

Investor confidence also remains high, as seen in the German ZEW Economic Sentiment figure released on Tuesday. While the locomotive of the eurozone is struggling now, the future looks brighter.

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Source: FT

All in all, the world’s most popular currency pair has room to bounce after the fall.

EUR/USD Technical Analysis

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Euro/dollar has dropped below the 50 and 100 Simple Moving Averages and momentum has turned to the downside. These bearish signs are may push it to the critical support at 1.2055, which separated ranges in early February. At that point, the Relative Strength Index may dip below 30, entering oversold conditions.

Some resistance awaits at 1.2110, which provided support last week, followed by 1.2150, a swing high from the same time. Further above, 1.2165 is Tuesday’s high and serves as an upside target.

Below 1.2055, the next cushion awaits at 1.20, the round number, and the next level to watch is 1.1955.

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