Today's session is being marked by a slight improvement in market sentiment, after Friday's session was frankly negative for equities and the euro.
The euro is once again trading below the parity against the US dollar, and remains under pressure while equities sell-off.
This will also be an important week for EUR/USD, as the US labor market data will be released on Friday with the release of the NFP report.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Daily Time Frame Chart
On the daily chart, we can see that the pair is just over 20 pips away from this year's lows.
If sellers manage to break below this zone, the bearish movement could intensify further and the euro could hit a new low this year against the US dollar.
EUR/USD, 4 hours time frame chart. Source: xStation
On the 4-hour chart we can see that the price ended up making a fake breakout (yellow circle) near the lower boundary of the structure.
At this point, the price has returned to being traded within the structure and in case the sellers regain control of the price, the downward movement could intensify again.
Daily Time frame chart. Source: xStation 5
Despite all the bearish pressures, during this session, EUR is leading the gains.
Source: currency-strength.com
Henrique Tomé, XTB Portugal
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
