EURUSD Forecast: Retesting Key levels below 1.07
EURUSD Forecast: the hawkish dollar and French political tensions sent the EURUSD down to retest key levels below 1.07
Share this:
- EURUSD drops below 1.07
- France 40 drops near yearly lows
- ECB Lagarde Speech is next for an interest rate and economic outlook
- DXY vs EURUSD chart analysis
Following a more hawkish than expected stance by the FOMC projections and statements, coupled with political turmoil in France, the EURUSD reversed its gains from the 1.0852 high and dropped back below the 1.07 level, retesting the key 1.0670 level. Higher volatility is expected before the weekly close, driven by Christine Lagarde's upcoming speech later today and ongoing political developments in the EU.
EURUSD Forecast: DXY – Daily Time Frame - Logarithmic Scale
Soaring back to its yearly up trending channel, the DXY hit a potential resistance level at the 105.40 high as the EURUSD retested the 1.0670 low. With positive momentum, the 105.60 level is next in sight above the 105.40 high, followed by May 2024 highs near the 106-zone, which aligns with the mid-channel area. A reversal back below the 104.20 – 104 zone, below the yearly channel, can dominate a bearish sentiment on the chart.
Why is the 1.0670 la key level for the EURUSD?
EURUSD Forecast: EURUSD – Daily Tile Frame - Logarithmic Scale
Dropping below 1.07, the EURUSD retested the upper border of the previous resistance connecting March, April, and May highs consecutively at 1.0670. The 1.0670 level aligns with the 0.786 retracement between April lows and June highs. With momentum still pointing lower a break below 1.0660 could push the trend back towards April lows near 1.06.
Proceeding with a reversal from the following down-trending resistance, confirmed by a reversal from momentum trends, the next potential levels to watch are 1.0740 and 1.0820.
--- Written by Razan Hilal, CMT
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Japanese Yen Forecast: USD/JPY 4% Rally Challenges Post-Intervention Downtrend 9 24 2026
USD/JPY momentum has shifted sharply higher, putting a major resistance confluence in focus as U.S. and Japanese event risk builds.
Oil Quietly Hands the Fed a Reason to Stay Hawkish
Oil prices and the U.S. dollar are both on the front foot as elevated energy costs feed Fed warnings that inflation may prove sticky.
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.