EUR/USD Hits Intraday Low as Bears Target 1.1000 Amid US Dollar Strength and Sluggish Markets

Posted Monday, May 1, 2023 by
Arslan Butt • 1 min read

EUR/USD reaches a new intraday low on Monday as bears target the 1.1000 round figures due to the broad strength of the US Dollar and slow markets resulting from holidays at numerous exchanges. Consequently, the Euro pair has been falling for three consecutive days, breaking the 200-bar Exponential Moving Average (EMA) and an ascending trend line from April 10.

The Euro pair’s inability to maintain the previous week’s rebound from short-term horizontal support, along with recent bearish signals from the MACD indicator, suggests that EUR/USD sellers are likely to stay in control. Currently, the major currency pair is dropping towards a horizontal support zone near 1.0960, which consists of multiple levels marked since April 25.

Nonetheless, a two-week-long ascending trend line around 1.0945 may pose a challenge to the EUR/USD bears. In contrast, a EUR/USD recovery could target the 1.1050 round figures before directing buyers towards a 12-day-long horizontal resistance area around 1.1065-70.

Subsequently, the recently established multi-month high of 1.1095 could entice Euro pair buyers before directing them towards the March 2022 peak near 1.1185.

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