EUR/USD Update: Ongoing Decline

The EUR/USD has continued its downward trend on Friday, slipping 0.15% to 1.1653 during Asian trading hours. Major currency pairs are under pressure as the US dollar gains strength, bolstered by the positive results from the recent meeting between President Trump and China’s President Xi Jinping.

At the moment, the US Dollar Index (DXY), which measures the dollar’s value against six major currencies, has risen by 0.15%, nearing 99.00 and reaching its highest in two weeks.

Comments from both leaders indicated a potentially positive shift in trade relations, emphasizing the importance of keeping the Strait of Hormuz open. Additionally, the high expectations that the Federal Reserve will maintain interest rates this year are contributing to the dollar’s rise.

In Europe, a majority of economists surveyed by Reuters predict that the European Central Bank (ECB) will increase interest rates during its meeting in June.

EUR/USD Technical Analysis

In Asian markets, EUR/USD dropped to around 1.1653, falling below the 20-day exponential moving average (EMA) of 1.1710, indicating a short-term bearish sentiment. The recent breach of a double top formation, following the April 30 low of 1.1655, suggests that the ongoing decline may continue.

The Relative Strength Index (RSI) is around 44, which indicates that while there’s still selling pressure, it isn’t exhausted yet. On the upside, the first resistance is at the 20-day EMA near 1.1710. A recovery beyond this level could potentially alleviate some bearish concerns and aim towards 1.1800. Conversely, if the pair continues to decline, it might move toward the April 8 low of 1.1589 and the April 6 low of 1.1505.