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EUR/USD settles in red zone

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EUR/USD

So, it seems that EUR/USD has chosen a direction at the end of the week, and that direction is downward.

It is worth paying attention to the dollar index behavior, as a significant upward movement is possible. If the current trend persists for a short while longer, it will create a technical breakout pattern upward for the dollar index, and a corresponding downward movement in the EUR/USD.

Currently, the most significant event in the market is the ongoing negotiations in the U.S. concerning the raising of the debt ceiling.

Importantly, the threat of a U.S. default should have led to a decline in the EUR/USD. However, we observe the opposite scenario. This fact suggests the strength of the movement.

We maintain our open sell positions from 1.0938, with the stop loss adjusted to nearly break-even at 1.0940, and we plan to buy if the price rises from 1.0940.

For now, we anticipate a further decline in the market.

The material has been provided by InstaForex Company - www.instaforex.com

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