If the EUR/USD is overbought or oversold, what could cause it to slide? Many traders are speculating that a change in economic data, such as the Euro Price Outlook: EUR/USD, could push the currency down to break a major resistance zone around $1.4120 in the short term. This would result in a break of the major support levels around $1.3100 and $1.2000 and it could result in the EUR/USD breaking an important triangle pattern.
A breakdown of the EUR/USD price outlook can be caused by changes in global economic data such as GDP growth, unemployment figures and inflation. One of the most important support levels identified by a number of analysts is at $1.3100 which is just outside the major bullish triangle pattern.
However, the main reason that the EUR/USD price outlook is overbought or oversold is because of the weak US Dollar. If the EUR/USD price outlook becomes more bearish, then the EUR/CHF may start to fall against the USD, causing the EUR/USD to break another major support level at $1.4120.
In addition to weakening US Dollar, some analysts are pointing to a possible slowing down of the European Economic Recovery. According to these analysts, a slowdown in the European Economic Recovery can also lead to a further weakening of the EUR/USD price outlook. These analysts believe that a worsening of the European Economic Recovery will cause a strengthening of the EUR/USD. However, this does not necessarily mean that the EUR/USD is going to go to the downside.
In fact, it is quite possible for the EUR/USD price outlook to break a major resistance zone around $1.3200 if the EUR/USD price outlook becomes bearish. As a trader, you should remember that although there is a bearish trend in the EUR/USD price outlook, there are several opportunities on the upside if you trade in a proper manner.
Although the EUR/USD price outlook has been bullish for several months, there is a high chance that it may turn bearish as the months go by. There are several reasons why the EUR/USD price outlook may turn bearish including a worsening of global economic data, a possible slowdown in the European Economic Recovery and a possible increase in political tensions among countries. The EUR/USD price outlook may even turn bearish because the US Federal Reserve will be delaying its interest rate increase.
Bearish EUR/USD price outlooks can be triggered by two things – one, the US Federal Reserve is delaying its interest rate increase or two, a country’s central bank tightening its monetary policy. Therefore, it is advisable that traders remain alert to any significant changes in the EUR/USD price outlook as well as the potential catalysts and avoid trading near a support or resistance level.
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