EUR/USD continues its descent to five-week lows at 1.0775, extending losses by 0.85% (95 pips) as the US-EU trade deal aftermath dominates market sentiment. The dollar remains broadly bid, with the DXY index climbing 0.6% to 104.20. European traders express concern over the trade agreement's potential impact on eurozone competitiveness, fueling euro selling across the board. Technical indicators show EUR/USD breaking below the 200-day moving average at 1.0790, a bearish signal that could accelerate declines. Immediate support lies at 1.0750, with a break potentially opening the path to 1.0700. Market participants note the absence of ECB officials' comments on the trade situation, adding to uncertainty. Options market data shows increased demand for EUR/USD puts, reflecting growing bearish sentiment among professional traders.
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