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- EURUSD - Euro to US Dollar
EURUSD EUR/USD
Euro to US Dollar
Euro to US Dollar
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The extraordinary rally of the EURUSD appears to be nearing its end. Since early March, the pair has surged by 10.7%, reaching as high as 1.15200, with much of the momentum driven by sharp gains during Asian trading hours in April. However, the bullish drivers that fuelled this ascent now seem to be fading.
Trade tensions between the United States and China have entered a period of de-escalation, with both sides signalling a willingness to seek compromise. In response, U.S. Treasury yields have stabilised—an indicator of calmer market sentiment—which in turn has brought more balance to the currency markets. Any progress towards formal negotiations between Washington and Beijing could further challenge the recent weakness in the U.S. Dollar.
Technically, the EURUSD has now overshot its previous upside targets, suggesting that a deeper reversal could be on the horizon. The pair’s current levels may represent a turning point, with primary downside targets seen between 1.10500 and 1.11500.
Against this backdrop, a short position at current levels is being considered, with a stop-loss set at 1.19500 in case of renewed Euro strength.
Euro to US Dollar
- The pair has the highest liquidity in the market and a vast number of trads are made with the pair. So, its movements largely indicates the behavior of the currency market in general. The pair is the easiest for technical analysis as it mostly follows the rules of it;
- The pair is likely the first one that every novice will meet during his/her first days in trading;
- Brokers usually have the lowest or zero trading fees on the pair. Brokers sometime give positive swaps on the pair, so a trader may make some money while keeping it for the longer term, and getting the profit on positive swap;
- The U.S. Dollar, or Greenback, is the leading currency in this pair, so it has the most influence on its movements. So, factors affecting the U.S. Dollar should be especially highlighted during technical and fundamental analysis of the pair;
- The EUR/USD is largely driven by two major economies and actions of the two largest central banks – The Federal Reserve (Fed) and European Central Bank (ECB). So, a trader should be focusing on macroeconomic data for both economies, including GDP, Consumer Price index (CPI), labour market indications, and statements of the central bank officials with a focus on the top officials of the Fed and ECB;
- U.S. 10-year Treasuries yields to German 10-year Bund ration is an indication of the strength of either currency. The higher the value, the stronger the Dollar;
- EUR/USD has a strong correlation with other European currencies, like the British Pound to the U.S. Dollar (GBP/USD) or the U.S. Dollar to the Swiss Franc (USD/CHF), and with cross rates of the Euro to other currencies. The pair has a strong exposure to USD/JPY, USD/CAD, and some other currency pairs.
| Ticker | EURUSD EUR/USD |
| Contract value | 100000 EUR |
| Maximum leverage | 1:500 |
| Date | Short Swap (pips) | Long Swap (pips) | No data |
|---|
| Minimum transaction volume | 0.01 lot |
| Maximum transaction volume | 70 lots |
| Hedging margin | 50% |
| USD Exposure | Max Leverage Applied | Floating Margin |
|---|
