The Euro currency has plunged to its lowest level since November 2022 in trading at the end of last week.
The Euro’s depreciation situation was driven by expectations of further monetary easing by the European Central Bank (ECB) and pressure on the European economy ahead of the Donald Trump administration in addition to the strengthening US dollar factor.
The US dollar has performed well throughout the past week with current factors continuing to favor it including economic data published at the end of the week.
The US manufacturing and services PMI data for November recorded good figures while the same data for Europe came with gloomy readings.
This drove a clear price movement direction on the EUR/USD currency pair chart.
If observed in trading last Friday, the price tried to touch the 1.05000 level and then plunged to exceed the 1.04000 level before reaching around 1.03400, recording a 2-year low.
However, the price was seen to be flat at 1.04000 until the end of the last trading session of the week.
Continuing trading in the new week, there was a gap in the opening price (gap) in the Asian session this morning (Monday) of around 50 pips indicating a slight retreat by the US dollar.
The price slowly hovered below the 1.05000 level as an important resistance for the price to be tested in addition to trying to break through the Moving Average 50 (MA50) barrier on the 1-hour timeframe on the EUR/USD chart which could signal a change in trend.
If the price is successful in continuing to rise after breaking through these resistances, the target is to reach the 1.06000 level which was also tested last week.
However, if it fails, the price could plunge back to the 1.04000 focus level before continuing to decline to the lowest level that has been reached.
Next, for a new record, the price will target a decline to test the focus zone at 1.03000.
