was steady at 1.1684 on Thursday, after three days of increased volatility. This stabilization occurs as geopolitical and trade tensions between the United States and Europe over Greenland decrease.
US President Donald Trump has reduced tensions by ruling out the use of military force to take control of Greenland and softening his tariff rhetoric towards European nations after reaching a framework agreement with NATO. However, the details remain unclear and Denmark has already stated that it is not considering negotiating the transfer of the territory to the United States.
On the US domestic front, attention is turning to the release of data on , which could provide more insight into the labor market. The Federal Reserve is expected to hold on at its next meeting, although the market expects a total rate cut of 50 basis points by the end of the year.
The euro has seen overall strength against the euro, but continues to weaken against the y.
Technical analysis
On the H4 chart, EUR/USD is consolidating around 1.1683. We anticipate a move lower, with potential for the downtrend to continue towards 1.1628, possibly 1.1598. This scenario is supported by the MACD indicator, which shows the signal line above zero and pointing downwards, reflecting the current bearish momentum.
A downward wave is forming towards 1.1644 on the H1 chart. After reaching this level, a correction to 1.1690 is expected, followed by a further decline to 1.1620. This outlook is confirmed by the stochastic oscillator, whose signal line is below 50 and points down to 20.
Conclusion
EUR/USD remains in a consolidation phase, with a bearish trend still in play. Geopolitical tensions have eased, but risks remain. Investors are closely monitoring US labor market data, which may influence the next movements of the dollar and euro. Technically, the pair remains in a bearish trend, with key support levels at 1.1628 and 1.1598.
By RoboForex Analysis Department
Disclaimer: Any forecast contained herein is based on the author's personal opinion. This analysis cannot be considered trading advice. RoboForex assumes no responsibility for trading results based on the trading recommendations and reviews contained herein.
