According to today's news, fears of a recession in Europe remain, and the euro is facing downward pressure against the dollar

The euro market appears to be maintaining bearish pressure, laying a solid foundation for the euro to enter the clearly bearish market. The market has broken through the previous channel, indicating that the euro is currently struggling to cope with the European Central Bank's decision. Notably, the ECB raised interest rates on Thursday, but gave the impression that the phase of monetary tightening has ended.

By contrast, the Fed still offers the possibility of at least one rate rise and remains firmly committed to bringing inflation down to 2 per cent. As a result, sentiment is now tilted towards "selling on the high". Thursday's candle was an important indicator, and such candles rarely appear alone. The most important candlesticks are all in a downtrend from the current trend.

The 1.05 level is a key psychological indicator that is likely to generate great interest and make it an attractive target, but the path to that goal may not be clear.

The EUR/USD currency pair has a volatile historical trend, and this characteristic is unlikely to change in the current situation. However, there has been a marked pullback in the past few months, and the apparent bearish trend has been reinforced in recent weeks.

In order for us to consider buying the pair, we must break through the 200-day moving average. This shift in sentiment requires a fundamental change in the stance of the European Central Bank and the Federal Reserve. At the same time, rising interest rates in the bond market continue to make the dollar a more attractive asset, further complicating the euro's path to recovery.

Ultimately, the euro is currently experiencing a challenging environment, as a lack of momentum indicates a downward trend. The recent decision of the European Central Bank has played a major role in this shift, while the Federal Reserve's commitment to raise interest rates has kept the dollar attractive.

The path forward looks steep, and the 1.05 level is an important focus. Until there is a fundamental change in the stance of the central banks of both countries, the chances of buying the pair remain slim.

At 15:34 Beijing time, the euro was trading at 1.0663/65 against the dollar.