Overall, since the end of September last year, EUR/USD has been able to look back on an intact upward movement, which initially reached 1.1032 US dollars, from February this year it only went up to 1.1275 in small steps US dollar and thus further up the target level from January 2022. Once there, the value turned around and fell back to 1.1032 US dollars in a first step, but this support was not able to help to stabilize. The pair is now approaching its second short-term target where there is a real chance of stabilization.
Dormant until September
As the recent development in EUR/USD shows, further losses are to be expected, especially in the area of the 38.2% Fibonacci retracement running at $1.0879. Only there is the pair believed to be capable of serious stabilization, and an excessive sell-off could even reach the area of the 200-day moving average at 1.0784 US dollars. In principle, a short investment could still be considered at this point, but with greatly increased risks. On the upside, it would take at least a bounce above $1.1095 to revisit the current yearly highs of $1.1275.