EUR/USD trims some losses in a calm trading session

💡 DMK Insight

EUR/USD’s minor gains above 1.1650 might seem positive, but they’re masking deeper concerns. The pair is still hovering near one-month lows around 1.1620, indicating a bearish sentiment that traders can’t ignore. With the Eurozone grappling with economic headwinds and the U.S. showing signs of resilience, the divergence in monetary policy could widen. If the pair breaks below 1.1620, it could trigger further selling pressure, potentially pushing it toward the next support level. Watch for any economic data releases from both regions that could shift sentiment. A failure to hold above 1.1650 could lead to a quick test of 1.1600, which is a critical psychological level for many traders. On the flip side, if the pair manages to reclaim 1.1700, it might signal a short-term bullish reversal, but that seems less likely given the current trend. Keep an eye on the daily charts for any signs of reversal patterns or volume spikes that could indicate a shift in momentum.