The EUR/USD pair has managed to avoid dipping below the 1.0950 mark. Economists at ING have assessed the outlook for the currency pair amid a focus on the Dollar's strength. As the US data calendar gears up with upcoming releases such as ADP, ISM services, and payrolls, the Dollar is expected to maintain its dominant position. This comes as significant Eurozone data has already been released earlier in the week.
As the week progresses, the pressure on the EUR/USD pair is anticipated to increase, particularly if the US data proves to be robust. Given the recent releases and economic indicators, the Dollar's strength is likely to be bolstered, which could exert more downward pressure on the Euro against the US Dollar. This situation raises concerns for Forex traders who are closely monitoring the developments in the currency market.
ING analysts foresee a potential test of 1.0900 for the EUR/USD pair by the end of the week. The declining trend of the Euro against the Dollar is expected to continue, given the likelihood of stronger US economic data. The 1.0900 level serves as a crucial support zone, and its breach could lead to further bearish sentiment, prompting traders to adjust their Forex positions accordingly.
Forex and Crypto traders must closely monitor the upcoming key economic data releases in both the Eurozone and the United States. Any surprise deviations from expectations in these economic indicators could trigger significant market movements, especially in the EUR/USD pair. The market sentiment and traders' risk appetite will largely depend on the outcomes of these data points, making it crucial for traders to stay vigilant.
With the Dollar poised to remain dominant against the Euro, Forex traders may consider adopting strategies that align with this trend. Short-term traders could explore bearish positions on the EUR/USD pair, targeting potential profit opportunities as the currency pair approaches the 1.0900 level. On the other hand, long-term traders may adopt a more cautious approach and closely observe market developments, waiting for potential reversal signals or significant support levels to emerge before taking any major positions in the Forex market.