The euro rose slightly on Monday in an attempt to recover from its three-week low against the US dollar.
However, expectations suggest that the single currency could face more downward pressure in the coming days.
These expectations come amid growing chances of the European Central Bank (ECB) cutting interest rates in June, while speculation is growing that the Federal Reserve will keep interest rates “high” for as long as possible this year.
According to analysts, the short-term technicals for the euro/dollar pair point to a downward trend.
The euro has already fallen 0.75% against the dollar in the past week, its second consecutive weekly loss.
Analysts say the $1.08 level is a key support level, and if it is breached, the euro could fall to $1.07 or even lower.
On the other hand, some analysts believe that there are some factors that could support the euro, such as continued economic growth in the euro zone and improved inflation data.
However, overall, expectations are that the euro could face more downward pressure in the coming days.
This means that investors should be cautious when dealing with the euro and closely follow developments in monetary policy in both Europe and the United States.
