Euro Pauses at Key 1.0500 Mark Amid Holiday Lull

Image Credit: Bloomberg

EUR/USD struggled at the 1.0500 level on Monday, ending a four-day winning streak as bulls reassess their position. The US market saw limited activity due to the President's Day holiday, leading to a lack of order flow. FX markets will regain momentum on Tuesday, but Euro buyers may face challenges as the data calendar remains light.

European economic sentiment surveys for Germany and the broader Eurozone will be released early Tuesday, though market reaction is expected to be limited as consumers tend to lag behind economic changes. February’s results are anticipated to show improvement from January.

Key US data this week includes the Federal Reserve’s Meeting Minutes from the most recent rate decision, due on Wednesday, and US Purchasing Managers Index (PMI) results on Friday.

EUR/USD failed to break the 1.0500 barrier on Monday, hovering just below it as buying pressure seems to wane. Technical indicators, including the Stochastic, suggest the pair is overbought, though a clear reversal has not yet been confirmed. The pair is currently trading above the 50-day Exponential Moving Average (EMA) at 1.0432, with strong support seen around 1.0300.

 

 

 

 

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