OTFX analysts: Euro/US dollar encounters resistance, market focuses on Powell's statements.

This week, the Euro/US Dollar trading exhibited an upward movement followed by a retreat, and the market is closely monitoring this critical technical juncture. Analysis reveals that the 200-day moving average intersects this pivotal area, covering the peak of a bearish flag pattern. Furthermore, the region near the 1.0750 level has historically displayed strong resistance, setting the stage for an upcoming technical challenge. Despite the recent market uncertainty, the bullish momentum for the Euro has not been definitively confirmed, even though it experienced a strong rebound in the latter part of last week.

Market attention has shifted to the forthcoming statements by Powell, which could serve as a reality check for Wall Street. If this possibility materializes, returns may experience a significant rise once again. In such a scenario, a moderate rebound is anticipated. However, the magnitude of this correction remains shrouded in mystery.

Nonetheless, one thing is certain: now is not the time for hasty trading. There are currently numerous variables that may not necessarily have a direct impact on these currencies. If you have previously profited from Euro/US Dollar trading, consider yourself fortunate. However, it is prudent to acknowledge that we are currently in a moment of escalating competition, which implies that the days of easy profits may be drawing to a close.

With the introduction of the 1.08 level, the market's expectations will be recalibrated. We find ourselves at a critical turning point, and it is necessary to let the market decide and then make capital commitments.

Traders are advised to seek returns through patience. In the current situation, this advice is highly relevant. If this indeed marks the beginning of a major trend reversal, there is still ample time to participate. Conversely, past experience has shown that attempting to predict market fluctuations leads to slippage and premature closures. Patience becomes crucial in the current scenario, as it holds the potential to yield substantial profits at the right moment.

The perspective of OTFX analysts:

OTFX analysts point out that the current market situation presents both challenges and opportunities for traders. The position of the 200-day moving average and the crucial 1.0750 level indicate the market's fragility. The impact of Powell's statements cannot be underestimated, as they may trigger a new round of market volatility. However, investors should remain calm, exercise caution, and patiently await clear signals.