EUR/USD Price Forecast: Loses ground below 1.1250, bearish technical prevails below 100-day SMA
The EUR/USD pair trades on a softer note near 1.1225 during the early European trading hours on Wednesday. French turmoil and fiscal concerns weigh on the Euro (EUR) against the US Dollar (USD).
On Wednesday, the EUR/USD pair traded close to 1.1225 amid concerns over France's political turmoil and fiscal challenges. Traders are keeping an eye on speeches from European Central Bank policymakers, particularly ECB President Christine Lagarde, as they await further insights into the euro's trajectory. French Prime Minister Sébastien Lecornu announced plans for additional curfews and increased police presence in response to ongoing protests, reflecting the government's ongoing struggles to address the security situation.
FX strategist Tommy von Brömsen from Handelsbanken noted the persistent bearish sentiment towards the euro, indicating a continued decline in its value. Meanwhile, the Federal Reserve Chair maintained a cautious stance on interest rate decisions, expressing uncertainty about future moves and emphasizing the need to await the outcome of upcoming meetings.
The combination of uncertainty in Europe and a cautious tone from the Fed has contributed to a bearish outlook for the EUR/USD pair, with price currently trading below both the 100-day Simple Moving Average and the upper Bollinger Band, suggesting a potential for further downside movement.
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