Original article credit: Written by Vladimir Zernov, FXEmpire.
Title: USD Recovers in Pre-Market: Key Levels for EUR/USD, USD/JPY, and AUD/USD
Published on FXEmpire
Overview
In Thursday’s pre-market trading session, the U.S. dollar witnessed a resurgence across major currency pairs following recent weakness. The anticipation of U.S. economic data releases and the evolving global interest rate environment contributed to the dollar’s rebound. Focus remains centered on key currency pairs such as EUR/USD, USD/JPY, and AUD/USD, which have shown varying trends in response to dollar strength and shifts in risk sentiment.
EUR/USD: Bearish Momentum Increases
The euro continued to lose ground against the U.S. dollar in Thursday’s pre-market session. Traders closely followed the movement of key technical levels as EUR/USD declined further.
Key Observations:
– The EUR/USD pair is trading near the 1.0650 support level, reflecting increased downside pressure.
– The Relative Strength Index (RSI) indicates that the pair is not yet in oversold territory, signaling that there may be more room for a further decline.
– A successful test and breach below the 1.0650 level could result in further bearish momentum targeting the next support at 1.0600.
– If EUR/USD manages to regain footing above 1.0650, the pair might make a move toward the nearest resistance around 1.0690.
– A rebound beyond 1.0690 could lead to a retest of 1.0725, providing a short-term bullish setup, although broader momentum favors the downside.
The euro’s weakness appears to be closely correlated with market expectations surrounding U.S. economic resilience and hesitancy around European growth prospects.
Factors Contributing to EUR/USD Decline:
– Strengthening economic indicators in the United States have renewed confidence in the U.S. economy.
– Divergence in monetary policy outlooks between the European Central Bank (ECB) and the U.S. Federal Reserve adds additional pressure on the euro.
– ECB rate cuts remain a possibility in the medium term, especially if inflation data weakens and economic activity underperforms expectations.
Looking ahead, traders may monitor U.S. jobless claims and GDP-related data for signs of sustained dollar strength or a potential reversal.
USD/JPY: Yen Pressured by Rising Treasury Yields
The Japanese yen came under renewed pressure as the USD/JPY pair experienced a lift during the Thursday session, following rising U.S. Treasury yields.
Key Observations:
– USD/JPY is currently navigating resistance around the 157.00 level after a recent surge.
– A climb above 157.00 may trigger an acceleration toward the next significant resistance near 158.00.
– If the pair fails to breach 157.00, we may see a pullback toward the 156.25 area in the short term.
– Bearish reversal prospects remain limited as long as there is consistent upward
Read more on EUR/USD trading.