EURUSD

After the panic at the beginning of the week, the Dollar Index entered a normalization process after approaching the 110 level. With this normalization, the short-term indicator, the 34-day average, reached the level of 107.80. The economic data to be monitored throughout the week will be decisive for the direction of the index and, consequently, the currency pairs. Today, the Services PMI and ADP private sector employment data will be followed, tomorrow the announcements from the Bank of England (BoE), and on Friday, the US employment data.

The Dollar Index continues to be under pressure as it did not provide a sufficient response after approaching the 110 level. The status of short-term indicators is crucial in determining the reactions of the EURUSD and GBPUSD pairs. The EURUSD pair has recovered from the 1.0210 level and entered the 1.0375 – 1.0430 region. However, if it remains below the averages, pressure towards the lower levels may continue. It should be noted that for sustainable movements, staying above the averages is necessary.