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The ‘Bad' Movement of EUR/USD

by Didimax Team

Talking about the most favourite currency for trading, Euro will be one of the currencies it self. EUR/USD is the pair which always be trending in the trading world, especially in Forex. EUR/USD or as known as The Major represents two countries with the highest economic condition. Besides, this pair has succeeded to face the volatility since the emersion of the Euro.

Even if both the Euro and US Dollar represent the high economic condition and become the most currency to be traded, but unfortunately the derivation of the currency also happen to Euro nowadays. Euro reached its lowest level since the last month until today. Many factors affect the downward pair of EUR/USD. Why's it?


What Happens To The Dynamic of EUR/USD Trading World

The derivation of EUR/USD couldn't be avoided nowadays. It's been a long time that EUR touched the ground level because of the increase of USD. On the last Tuesday, the EUR/USD pair got down to the lowest level in 1.11916 and was closed in 1.12260. It's getting closer to the support area. Seems not enough, the derivation happens again today.

Based on the prediction, the EUR/USD tend to be down to the closest support 1.11916 and 1.11754 (the lowest level in March) as the next support. In the preparation of the Europe session, the EUR/USD still experiencing the derivation. Today, it is going to be tested a support area in 1.12000.

If the EUR/USD keeps on going down to 1.12000, then the next support is the level that has mentioned before, that’s the lowest level in March. But if the EUR/USD keeps on its position above the key level 1.12000, then it has the chance to come back to the Pivot Point Daily in 1.12261 and R1 in the level 1.12606.

The Factors Impacted The Derivation of EUR/USD

The down of the pair will not happen without any factor which triggers it. Yes indeed that it happened because of the strong factor which can defeat it, such as the strengthening of the USD itself. How can it happen? The USD could defeat the EUR because the house selling data in March was touched the top.

This selling data was above the data which has estimated by the economic and also above the selling number in February. 692k unit of the house sold, more than it estimated, 647k. The data even showed that selling in the US was increased significantly and closer to the highest level. It increases the positive sign on the retail and export.

The moment of the house selling in the US became the strongest factor which impacted the Euro currency. The EUR/USD was traded in 1.1209 at first, but now it was down 0.14% in the New York Closing session last night. Takuya Kanda, General Manager of Research said that Europe economic look weak towards US economic. It affected the EUR.

The Tips For EUR/USD Traders

So, as we can see that the condition of EUR/USD is unstable or even worse because the EUR keeps going down because of the USD pressure. But traders still can do EUR/USD trading. But here are the thing traders should know. As mostly currency pairs, EUR/USD happens 24 hours a day, and 5 days a week.

The trading time is flexible enough for the traders to exit and enter the market at any time. Besides the trading time, you should also make strategies to do the trade. One of them, of course, you have to update about the growth or the decrease of the currency pair by observing news event every time you want to trade.

You need to know that the main appreciation of EUR over USD defined by the strength of both currency's economy by the GDP growth rates, unemployment, or another important factor that can affect the economic metric. A currency will have a higher value if they have higher growth and also lower unemployment.



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