EUR/USD Remains Under Pressure Ahead of ECB Lagarde's Speech
The Euro continued its downward trend against the US Dollar on Tuesday, trading near a fresh 11-week low. The market remains bearish as investors anticipate further interest rate cuts by the European Central Bank (ECB).
Key Factors:
- ECB Rate Cuts: Expectations for additional ECB rate cuts are weighing on the Euro.
- Economic Growth Concerns: Growing risks to the Eurozone's economic growth are increasing the likelihood of further rate cuts.
- US Dollar Strength: The US Dollar's strength, driven by a less aggressive Federal Reserve and positive economic data, is also putting pressure on the Euro.
Technical Analysis:
- The EUR/USD pair is currently trading below the 200-day Exponential Moving Average (EMA).
- The 14-day Relative Strength Index (RSI) is in oversold conditions, suggesting potential for a short-term rebound.
- Key support and resistance levels include 1.0800, 1.0750, and 1.1000.