The EUR\/USD has moved to the 200-hour moving average at 1.1667. It has also reached the lower boundary of the swing area, which ranges between 1.1663 and 1.1691.<\/p>\n
This swing area served as support from the end of June into July. It was also a key region from April to November in 2021.<\/p>\n
We are observing the pair at a critical inflection point where the technical support aligns with significant historical price action. The market’s behavior in this zone is paramount, as a failure to hold could signal a continuation of the broader downtrend. A decisive bounce, however, might suggest a near-term bottom is forming.<\/p>\n
The fundamental picture favors a stronger dollar, creating headwinds for this pair. Recent data showed Eurozone inflation hitting a record 9.1% in August, but the European Central Bank is constrained by recession fears, as expressed by Lagarde. Conversely, the latest US jobs report added a solid 315,000 positions, giving Powell more room for aggressive rate hikes.<\/p>\n
Given this divergence, we believe traders should consider purchasing put options to position for a break below the 1.1663 level. This strategy offers a defined-risk approach to profit from a potential slide, especially since this same area failed as support in late 2021, leading to a significant decline. A break here could open the door to test the lows near 1.1200 from that period.<\/p>\n
For those anticipating a sharp move but are uncertain of the direction, positioning through long volatility strategies like straddles makes sense. With key inflation and growth data pending from both regions, a spike in price movement is highly probable. This allows a trader to profit from a breakout of the current consolidation, regardless of whether the catalyst is surprisingly positive or negative for the euro.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD reaches 200-hour moving average, testing key support zone between 1.1663 and 1.1691 again.<\/p>\n","protected":false},"author":62,"featured_media":16967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-26742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26742"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26742\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16967"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}