After falling the previous day, the euro started strong, showing solid support. However, it fell again in the European market due to rising U.S. long-term interest rates. During the New York session, news that Ukraine fired a UK-made cruise missile at Russia caused the dollar to strengthen. The euro dropped below the previous day’s low of 1.0524, reaching 1.0507. Later, there was some recovery, bringing the euro back to around the mid-1.05 range by the close.
Euro selling, caused by the European Central Bank’s (ECB) potential interest rate cuts and the Federal Reserve’s (FRB) reduced likelihood of rate cuts, has slowed for now.
Currently, the euro has shown solid support at 1.05 dollars. It is likely to move in a range between 1.06 and 1.05 in the short term.
EUR/USD Predicted Range: 1.0570 – 1.0500
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