Major European stock markets mostly ended lower today. The UK’s FTSE 100 rose slightly by 0.23%, while Germany’s DAX fell by 0.06%. France’s CAC declined by 0.34%, Spain’s Ibex dropped by 0.59%, and Italy’s FTSE MIB decreased by 0.09%. The EUR/USD has reached new highs as European and London traders wrap up their day, hitting 1.14894. This just surpassed an earlier high of 1.14886, while last week’s peak was 1.14944.

EUR/USD Returns to Previous Swing Area

On the daily chart, the EUR/USD is back in a previous swing area from 2021/2022, ranging between 1.1482 and 1.1516. It briefly exceeded this area in April, reaching 1.15726, but could not maintain that level. If it moves above the swing area again, it could target the April high of 1.15726. Today’s trading shows most major European markets ended lower, with only London’s main index seeing a slight gain. That 0.23% rise stands out, especially since Spain and France showed bigger losses. Germany and Italy had only minor declines. In currency trading, the Euro gained strength today. Near the close of European sessions, the EUR/USD approached the 1.149 mark, slightly exceeding earlier highs. This rise is significant because it has returned to a historically important zone from early 2022. This area, between roughly 1.1482 and 1.1516, was a turning point back then. The April high of 1.15726 was a brief breach before prices fell back. This prior false breakout makes the current movement intriguing. If momentum continues upward, traders might look to target that earlier high from two months ago. However, it needs further confirmation. We are back in a range that attracts both buyers and sellers. Until the price decisively breaks and holds above 1.1516, it still faces familiar resistance.

Expected Volatility Around This Zone

Looking ahead to next week, we expect volatility in this zone. Anyone looking for short-term direction must keep stops tight and be ready to adjust quickly. This requires monitoring not only price levels but also trading volumes during movements above or below this range. Germany’s mild losses may reflect how markets are absorbing rate conditions and inflation data. In Spain, the deeper decline might indicate more significant domestic issues. Meanwhile, France’s 0.34% drop follows a week of political uncertainty. Milan’s slight decline may relate to recent jitters in the bond market impacting Italian debt. Overall, we see pressure in equity markets coinciding with a stronger Euro—an unusual pair during risk-off sentiment. This could suggest traders are expecting changes in interest rate differentials, especially after recent comments from central banks. The continuation of this Euro strength depends heavily on upcoming data. We’re closely monitoring developments tomorrow. Any movement out of the current Euro range—or a rejection from today’s high—will be crucial for those with directional futures or options. The key is not just to identify levels but to observe how prices behave around them. If the Euro fails to break above 1.1516 convincingly, sellers may make another move. Furthermore, today’s equity losses indicate growing caution, which could shift investment toward safer assets and contribute to the currency changes we’re experiencing. Now is the time to stay alert rather than make assumptions. Pay attention to market reactions, not just to levels. Ignoring this may leave late entries vulnerable to quick reversals. Create your live VT Markets account and start trading now.

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