EUR/USD is once again trending lower as the pair faced another rejection from the key resistance level of 1.10. The latest analysis reveals that the Euro to Dollar exchange rate could be eyeing another 1%-2% drop in the coming days.
On Friday, Euro continued to slide against the greenback and was down 0.6% till the start of the New York session. This puts the overall weekly decline of EURUSD pair at 0.47% after a 1.79% surge in last week. The dollar continued to gain strength against a basket of other currencies on for the second consecutive day.
EURUSD Gets Rejected From $1.10 Again
The EUR/USD chart shows that the pair has failed to break above the key psychological level of 1.10 despite multiple attempts. Consequently, the pair could now face a deeper pullback in the coming days. The weakness in Euro comes as no surprise as the dollar strength index got a bounce from 102 level.
The bounce in DXY index comes despite a pause in rate hike by the US Federal Reserve. It is worth mentioning here that Euro is not the only currency facing headwinds due to a bounce in DXY, as the British pound is also showing a similar decline.
EUR/USD May Retest 1.08 Soon
The recent rejection from 1.10 level has opened the doors for a bigger pullback in EURUSD. In the coming days, the pair may retest the $1.08 support level, which is a previous resistance level on the chart. In case of a failure to bounce, the pair may get some support from the May 2023 low of 1.063.
EUR/USD forecast 2023 can only flip bullish if the pair breaks above the 1.10 level and flips it into support. This may trigger a strong rally in Euro in terms of US dollar, which is susceptible to the policies of the US Federal Reserve.
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