The EURUSD pair is currently experiencing significant fluctuation due to both technical and fundamental factors.
From a technical perspective, the pair is near its multi-month low. The pair touched below 1.05 breaking the lows of February 2023.There is no signs of downward exhaustion. The 20 day simple moving average(SMA) indicator maintains its firmly bearish momentum. RSI , MACD and other oscillators are consolidating near oversold readings.
On the fundamental side, the US dollar has been benefiting from hawkish comments from FED officials. There is expectation of further rate hike. The US 10 year bond yield is currently at 4.8% which is 125 bps more than SVB issue. This has resulted in a stronger USD and a weaker EUR. The Eurozone is also facing challenges such as geopolitical tensions, stagflation and energy supply concerns.
However, some analysts believe that the outlook for the EUR/USD is slowly turning bullish after its most recent sell-off took it into a strong support area. This suggests that the bearish pressure may soon fade.
In conclusion, while the EURUSD pair is currently under bearish pressure due to both technical and fundamental factors, there are signs that a bullish reversal may be on the horizon. As always traders should keep an eye on economic indicator and market news for further insights.