EUR/USD Under Pressure Amid French Political Uncertainty and Focus on Fed Policy
The EUR/USD currency pair came under pressure again in this morning's trading, weighed down by political uncertainty in Europe and investor sentiment still focused on the US Federal Reserve's monetary policy.
The euro continued to weaken after investors highlighted the potential for a political crisis in France. Markets await a confidence vote against the French Prime Minister on September 8, which poses additional political risks in the Eurozone. At the time of writing, EUR/USD was hovering around 1.1631, its lowest level since August 6.
Investors are also awaiting the release of key US economic data, including the Personal Consumption Expenditures (PCE) and employment reports, which will guide the Federal Reserve in determining its policy direction. Currently, the probability of a Fed rate cut in September remains at around 87.2%, keeping the dollar in a relatively strong position.
Technically, EUR/USD remains under pressure, moving below 1.1600. The pair is consolidating within the 1.1583–1.1742 range, which is referred to as the "fair value gap" zone on the H4 chart. If the price breaks through the support at 1.1583, further weakness is likely. Conversely, a breakout above 1.1742 could establish a short-term bullish trend.
Technical indicators show a dominant bearish bias, although on the very short timeframe (M15-H1) a "Strong Buy" signal appears, indicating a potential short-term correction.
In the short term, EUR/USD is expected to remain under pressure due to political factors in Europe and the strengthening of the US dollar. However, the market will await PCE data and the direction of the Fed's policy before determining the main trend.
Source: Newsmaker.id
