Now, the euro-dollar exchange rate will be called upon to defend at least the round support of 1.06 to avoid a return to the lows seen in over six months.
Meanwhile, today at the time of writing, the euro-dollar exchange rate is exactly 1.0610, while the US dollar index stops at 106.175 points, at the relative highs.
Forecasts on the euro-dollar exchange rate
With such a large and constant retreat, the forecasts for the euro-dollar exchange rate remain profoundly bearish, with the concrete possibility of new retreats below 1.06 and towards the October lows between 1.052 and 1.058.
In the event of a break-out even above these levels, the analyzes will need to be updated with new technical perspectives.
In this regard, although I do not consider the euro-dollar exchange rate capable of large rebounds, a recovery attempt aimed at avoiding the test of the above-mentioned supports and bringing the price back steadily above 1.06 seems plausible to me.
This rise, however, will most likely be limited to the reconquest of the above-mentioned target and a possible extension towards 1.065 or 1.068. The resistance of 1.07 could in fact represent an already excessively ambitious obstacle for the recovery of the euro-dollar exchange rate.
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