Since May 3, the EUR/USD pair has been retracing, with constant and unrelenting falls that have broken technical support levels such as 1.10, 1.0950, 1.0900, and 1.0880 (today). These were previously thought to be strong support levels, but in the current market conditions, they have proven to be easily broken. Several macroeconomic data releases and monetary policy meetings this week will determine whether the market will stabilize or continue to fall.
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The pair has lost its prominent support with the recent drop below 1.0880 and is currently attempting to return to 1.0885 area. If the pair rises above this level, it could reach 1.09 and 1.0920. However, a recovery aimed at limiting further discounts at these levels is possible.
In a bullish scenario, the pair could consolidate and recover to resistance levels of 1.09- 10925. If this occurs, the EUR/USD pair may regain momentum and rise to 1.10, indicating a convincing market rise. The bearish hypothesis, on the other hand, could lead to further discounts and potentially push the pair towards the minimums of the month at 1,0540-1.0560 but it is not said that it will succeed.
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