The rebound is under pressure and the outlook remains bearish.

Forex

Summary:

The Eurozone faces the risk of stagflation, coupled with the transmission of the Middle East conflict to the inflation path, leading to increased expectations of a Federal Reserve interest rate hike. As a result, the euro is under great pressure.

SELL EURUSD

Close Time

CLOSED

1.16250

Entry Price

1.15250

1.16700

1.14078 -0.00048 -0.04%

100.0

Pips

Profit

1.15250

1.15247

Exit Price

1.16250

Entry Price

1.16700

Fundamentals

The high inflation in the Eurozone, influenced by the Middle East conflict, provides support for the European Central Bank's interest rate hikes and hawkish stance. However, the Eurozone economy is relatively weak, with most economic data pointing downwards and a high risk of stagflation, which is more bearish for the euro.

On the other hand, the US job market has seen a slight decline but remains resilient. Market expectations for the upcoming non-farm payrolls report are generally optimistic, and rising inflation expectations due to the Middle East conflict, coupled with increasing likelihood of Fed rate hikes, have strengthened the dollar and further pressured the euro. Currently, the euro still has room to fall.

Technical aspects

Rebound pressure remains, bearish outlook still intact_1

From the 4-hour chart, EURUSD has been trending downwards in recent times and is currently in a narrow consolidation phase. The short-term rebound is weak, and the highs are constantly decreasing. The non-farm payroll data today may be the key to breaking the trend. If it breaks below 1.159, it is expected to fall further and quickly towards the 1.15 level.

The main strategy is to sell on rallies. You can try to sell short when the price rebounds to around 1.1625, with a target of around 1.152 and a stop loss above 1.166.

Trading advice

Trading direction: Short

Entry price: 1.1625

Target price: 1.1525

Stop-loss level: 1.1670

Downside support levels: 1.1590/1.1520

Upward resistance levels: 1.1530/1.1660

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