On Monday, in the European market, dollar buying led to a drop in the euro. With fewer participants in the NY market due to Veterans Day, selling continued, pushing the euro down to 1.0629, the lowest level since April.
Germany’s coalition government has collapsed, highlighting a weaker Germany versus a strong U.S. under Trump. The Trump administration is likely to impose high tariffs on China, which is negative news for Germany, as it heavily depends on trade with China.
The 21-day moving average crossed below the 200-day moving average, which made the market feel more comfortable with selling. With the euro’s decline picking up speed, there may be some short-term buying. However, if buying slows down, the euro may test the year’s low of 1.06 seen in April.
Euro-Dollar Forecast Range: 1.0700–1.0600
Note: The information above does not guarantee profit. Please make your own decisions when trading.