Key Moments
- EUR/USD traded around 1.1940 after briefly dipping to 1.1895, a level that has acted as short-term support over the past three sessions.
- Analysts say the euro’s pullback is corrective, with buyers staying active near the 1.1880–1.1900 zone.
- Expectations that Kevin Warsh will be named the next Federal Reserve Chair have supported the dollar. However, its gains remain limited.
Euro Stabilizes After Brief Intraday Weakness
Traders view the euro’s recent drop against the dollar as temporary. Buying interest reemerged after the intraday dip, preventing a broader trend reversal.
EUR/USD last traded around 1.1940 on Friday, after earlier falling to 1.1895. That level acted as short-term support during the past three trading sessions, helping curb further downside pressure.
The rebound near this zone highlights ongoing demand from buyers. Meanwhile, the dollar’s firmer tone has not translated into strong selling momentum.
Strategist View: Downside Driven by Dollar Strength
“EUR/USD continues to attract buyers around the 1.1880–1.1900 area, despite the stronger dollar,” says Francesco Pesole, FX Strategist at ING Bank.
He adds, “A break lower depends entirely on USD strength. Today’s eurozone data should play a secondary role.”
Focus Turns to Federal Reserve Leadership
Markets are shifting attention to the U.S., where Kevin Warsh is expected to become the next Federal Reserve Chair.
Warsh is widely seen as market-friendly. As a result, the news has offered near-term support to the U.S. dollar.
Pesole notes, “The dollar needed a catalyst for a recovery. The likely nomination of Kevin Warsh provides exactly that.”
Dollar Gains Remain Contained
Despite positive sentiment toward the dollar, gains remain modest compared with earlier in the week.
Against this backdrop, the technical picture for EUR/USD remains positive. The pair still trades above key recent support levels.
Overall, the euro’s recent softness appears to be a period of correction and consolidation, rather than a sign that the exchange rate has reached a major peak.
Key EUR/USD Levels
| Level | Description |
|---|---|
| 1.1895 | Intraday low and short-term support over the past three sessions |
| 1.1880–1.1900 | Zone attracting repeated buyer interest, according to ING Bank |
| 1.1940 | Approximate trading level for EUR/USD on Friday |
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