The EURUSD pair is still trading within the narrow 1.1600–1.1800 range, a dynamic influenced by the delayed US labor market report last week due to the American government shutdown. The data is tentatively scheduled for release this Friday, though ongoing budget negotiations may postpone it again.
Meanwhile, political tensions in France have escalated since Prime Minister Sebastien Lecornu resigned on Monday. Right now, investors are ignoring these developments, but if there is no end to this uncertainty, it could eventually hurt financial markets and make the euro weaker. France is facing an economic downturn, which prompted former government head François Bayrou to propose €43.8 billion in budget cuts and the cancellation of two public holidays— a move that ignited violent union protests opposing any erosion of workers' rights. This political impasse, potentially unresolved even by early elections, subjects national finances to intense market scrutiny. Significant community opposition threatens to obstruct necessary reforms, raising the risk of a debt crisis in one of Europe's largest economies. Such a slump could exert pressure on the currency and resemble the Southern European one over a decade ago.
The pair is currently forming a head-and-shoulders pattern, which typically signals an impending decline. If the pattern unfolds and the price hits 1.1550, the next support will be 1.1450.
The overall recommendation is to sell EURUSD upon reaching 1.1550. Profits are taken at 1.1450. Stop loss is set at 1.1770.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
