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ING's Francesco Pesole has reiterated a bearish outlook for the EUR/USD pair, emphasizing that recent market dynamics have raised the threshold for positive reactions to Middle East-related news. He identifies 1.1570 as a critical support level, referencing the early-March breakdown below 1.160 as a key technical event. The analyst notes that bullish sentiment toward the euro remains fragile, with geopolitical tensions and the Federal Reserve's policy trajectory continuing to weigh on the pair. For traders, this bearish bias suggests caution in long positions, with a focus on monitoring the 1.1570 level as a potential trigger for further declines. The broader implications for forex markets include heightened volatility if the support fails, which could accelerate the EUR/USD toward 1.1500. Investors should also watch for shifts in risk appetite and central bank interventions, particularly from the ECB and Fed, which could alter the current trajectory.
