EURUSD → Strong $ negatively affects the pair

16 Okt 2023

EURUSD on the background of a strong dollar may continue its decline. A flat and support retest is being formed. If the dollar goes up, the currency pair will break the support

We observe the formation of a bearish trend. Earlier, the price tried to break the trend resistance and change the market direction, but only managed to form a flat between 1.0635 - 1.05000. The support is being retested on the background of DXY strengthening. The price will go up at the next retest, which will have a negative impact on EURUSD.
There is a possibility that the price may retest the flat resistance or one of the moving averages before further decline.

Support levels: 1.05000
Resistance levels: 1.05600, MA50

In the long term I expect a breakout of the support at 1.05000, but it can happen either on a retest or after a pullback.

Regards R. Linda!