EUR/USD Remains Sideways, Bearish Pressure Intensifies

3 days ago

EUR/USD is trading around 1.0365, exhibiting a short-term sideways trend but facing increasing bearish pressure from the key resistance zone at 1.0414. On the 4-hour chart, the descending trendline and EMA 34 (1.0410) and EMA 89 (1.0440) act as strong barriers, limiting any recovery attempts. On the downside, the primary support zone at 1.0342 - 1.0291 is preventing a deeper decline.

News indicates that the European Central Bank (ECB) maintains a dovish stance, adding pressure to the Euro, while weak economic prospects in the Eurozone further weigh on the currency. Meanwhile, the US Dollar remains supported by the Fed's high-interest-rate policy, leaving EUR/USD struggling to gain upward momentum.

In the short term, if EUR/USD breaks below 1.0342, the downward move could extend to 1.0290 or lower. Conversely, a break above the resistance at 1.0414 could push the pair toward 1.0440, though this scenario remains unlikely without clear market drivers. Traders should closely monitor key fundamentals, including US economic data and ECB commentary, to guide their trading strategies.