Market Analysis: EUR/USD Approaches Important Support
FXOpen
Yesterday, EUR/USD hit new May’s lows. This week’s latest news contributed to the decline:
→ Germany's GDP in Q1 2023 decreased by 0.3% compared to the previous three months. German media write about the official start of the recession.
→ The US economy in Q1 grew by 1.3% in annual terms.
→ Worrying opinions are spreading about a possible crisis due to the situation in the US housing market. According to JPMorgan analysts, the next shock to the US banking system could be loans for commercial real estate.
→ Traders see the dollar as a reliable asset in the face of the not yet raised US government debt ceiling.
The EUR/USD chart shows that the rate has already fallen by 3.3% from the peaks of May. The rate is approaching the psychological mark of USD 1.07 per euro, which may support the market.
The technical analysis of EUR/USD gives reason to count on another potential support level. We are talking about the lower line (1) of an important ascending channel that has been operating since last year — if it is reached, buyers may become more active using the rebound trading strategy on the EUR/USD market.
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