EUR/USD Stays Pressured Below Mid-1.1400s After Failing at 200-SMA
EUR/USD edges lower for a second straight day as energy-driven inflation fears revive Fed rate hike bets, supporting the US dollar. The pair remains pressured below mid-1.1400s after failing near the 200-SMA on the 4-hour chart.
The euro continues to lose ground against the dollar for the second consecutive session on Friday. Renewed concerns over energy-driven inflation have strengthened expectations that the Federal Reserve will keep raising interest rates, which in turn underpins the greenback.
The pair attempted to break above the 200-period simple moving average on the 4-hour chart but failed, and is now trading below the mid-1.1400s. Escalating US-Iran tensions are also adding to risk aversion, further weighing on the single currency.
Traders remain cautious ahead of the next key resistance and support levels, with the pair showing no clear signs of a reversal from its current downtrend.
Source: FXStreet Forex News