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EUR/USD: Unusual outperformance of emerging market currencies – Commerzbank

In recent weeks, the US Dollar (USD) has recovered quite broadly. Rather than trading at around 1.18, EUR/USD has frequently traded below 1.16, and on Friday it even approached 1.15.

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💡 DMK Insight

The USD’s recent strength is reshaping the forex landscape, and here’s why traders need to pay attention: With EUR/USD dipping below 1.16 and nearing 1.15, this trend signals a potential shift in market sentiment. The dollar’s recovery reflects broader economic indicators, including rising interest rates and inflation concerns, which typically bolster the greenback. For day traders and swing traders, this could mean adjusting positions on euro pairs or even looking at USD-crosses. If the dollar continues to gain traction, watch for key resistance levels around 1.15 for EUR/USD—breaking below could trigger further selling pressure. But don’t overlook the flip side: if geopolitical tensions or economic data releases favor the euro, we could see a swift reversal. Keep an eye on upcoming economic reports that could impact both currencies. Monitoring the daily charts for patterns around these levels will be crucial in making informed trading decisions.

📮 Takeaway

Watch EUR/USD closely; a break below 1.15 could signal further dollar strength, impacting euro positions significantly.

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