The EUR/USD pair, a key indicator in forex trading, is influenced by various factors, including technical and fundamental analysis, and inflation.
Technical analysis reveals that the EUR/USD pair has been experiencing volatility with significant resistance and support levels. Traders use tools like moving averages and Fibonacci retracements to predict future trends.
Fundamental analysis on the other hand considers economic indicators such as GDP growth, interest rates and unemployment rates. These factors provide insight into the economic health of the Eurozone and the US influencing the EUR/USD pair.
Inflation plays a crucial role too. Higher inflation in the Eurozone compared to the US could weaken the Euro against the dollar. Conversely, if inflation is higher in the US, the Dollar might weaken causing the EUR/USD to rise.
Looking in to the chart, EURUSD has taken support at 1.0820 area which is 50% of Fibonacci retracement. If the pair stays above this level it can go up to 1.0950.
In conclusion, understanding these factors can help traders make informed decisions in the EUR?USD forex market. Always stay updated with economic news and market trends for successful trading.