EUR/USD: Soft tone within bullish trend – Scotiabank

💡 DMK Insight

The Euro’s recent dip against the Dollar could be a buying opportunity for traders. With the Euro drifting toward the lower end of its recent range, it’s crucial to watch how yield spreads are influencing this movement. Despite the current weakness, analysts still see a bullish trend for EUR/USD, suggesting that this could be a temporary setback rather than a reversal. Traders should keep an eye on key support levels to gauge if the Euro can bounce back. If it holds above recent lows, it might signal a solid entry point for long positions. Conversely, a break below those levels could trigger further selling pressure. Look for any shifts in economic indicators or central bank signals that might affect yield spreads, as these could provide clues on the Euro’s next move. Monitoring the daily and weekly charts for patterns will also be essential, especially if the Euro approaches critical support levels.