EUR/USD Price Analysis – Oct 02, 2024
Daily Price Outlook
During the European trading session, the EUR/USD pair is trading slightly lower in the 1.1070s on Wednesday, following a sharp decline from 1.1135 on Tuesday. This downturn can be largely attributed to disappointing inflation data from the Eurozone. The Harmonized Index of Consumer Prices (HICP) reported a year-over-year increase of only 1.8% in September, a drop from 2.2% previously and below expectations of 1.9%.
Meanwhile, core inflation fell to 2.7%, slightly down from August’s 2.8%. These figures suggest that inflation is now trailing the European Central Bank's (ECB) target of 2.0%, raising concerns about the economic outlook. Consequently, the likelihood of further interest rate cuts by the ECB has increased, which could lead to capital outflows and exert additional pressure on the euro.
Impact of Eurozone Economic Data on EUR/USD Pair
As we mentioned, the previously released Eurozone unemployment rate has had a minimal impact on the pair, remaining steady at 6.4% in August, unchanged from July and in line with economists' expectations. However, the recent inflation figures have heightened concerns regarding the economic outlook in the region, suggesting that further ECB rate cuts could weaken the euro.
Moreover, the EUR/USD pair has faced additional downward pressure due to the strengthening US dollar, which rebounded sharply on Tuesday following positive job data. The JOLTS Job Openings report revealed an unexpected increase in job openings to 8.04 million in August, significantly above the revised figure of 7.71 million in July and exceeding expectations of 7.66 million.
This robust labor market data offsets weaker manufacturing activity in the US, as indicated by the ISM Manufacturing PMI, which remained in contraction territory for September.
Therefore, the steady Eurozone unemployment rate has done little to support the euro amid rising inflation concerns, while strengthening US labor market data, particularly the surge in job openings, has boosted the dollar, increasing downward pressure on the EUR/USD pair.
Geopolitical Tensions and Economic Indicators Weigh on EUR/USD Outlook
The recent sell-off in the EUR/USD pair has intensified, driven largely by escalating geopolitical tensions in the Middle East. Iran's recent missile strikes on Israel have prompted a surge in safe-haven investments, pushing traders toward the US dollar and putting further downward pressure on the EURUSD pair.
As we look ahead, traders will be keeping a keen eye on the US ADP Employment Change data for September, along with statements from Federal Reserve officials, for further clues about market direction. Additionally, the ongoing situation in the Middle East and its repercussions on global markets will play a crucial role in shaping future movements of the EUR/USD pair.
EUR/USD - Technical Analysis
EUR/USD is currently trading at $1.10651, down 0.02% in today’s session. The pair has struggled to gain traction, reflecting the broader uncertainty in global currency markets. After testing the $1.10832 resistance level earlier today, EUR/USD failed to break higher, suggesting that bearish momentum is still intact. The 50-day Exponential Moving Average (EMA) at $1.11405 continues to act as a strong resistance, capping further upside potential.
The Relative Strength Index (RSI) has dipped to 32, indicating bearish momentum and suggesting that EUR/USD could face additional downward pressure if it drops below 30. On the downside, immediate support is seen at $1.10461. A break below this level could accelerate declines toward $1.10254 and $1.10051. Conversely, for a bullish reversal to take hold, the pair must decisively break above the pivot point at $1.10695 and test the resistance levels at $1.10832 and $1.10952.
Short-term technical indicators suggest that EUR/USD may experience further declines if it fails to regain ground above $1.10695. The pair remains under selling pressure, with an entry below $1.10694 offering potential profit at $1.10453. Traders should watch for a move above $1.10832 to signal a potential bullish reversal.
Related News
- GOLD Price Analysis – Oct 02, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate Resistance: $1.10832 – A break above could lead to testing the next resistance at $1.10952.
- Immediate Support: $1.10461 – Failure to hold this level could result in a decline to $1.10254 and $1.10051.
- Pivot Point: $1.10695 – Currently acting as a short-term neutral level.
EUR/USD is currently trading at $1.10651, down 0.02% in today’s session. The pair has struggled to gain traction, reflecting the broader uncertainty in global currency markets. After testing the $1.10832 resistance level earlier today, EUR/USD failed to break higher, suggesting that bearish momentum is still intact. The 50-day Exponential Moving Average (EMA) at $1.11405 continues to act as a strong resistance, capping further upside potential.
The Relative Strength Index (RSI) has dipped to 32, indicating bearish momentum and suggesting that EUR/USD could face additional downward pressure if it drops below 30. On the downside, immediate support is seen at $1.10461. A break below this level could accelerate declines toward $1.10254 and $1.10051. Conversely, for a bullish reversal to take hold, the pair must decisively break above the pivot point at $1.10695 and test the resistance levels at $1.10832 and $1.10952.
Short-term technical indicators suggest that EUR/USD may experience further declines if it fails to regain ground above $1.10695. The pair remains under selling pressure, with an entry below $1.10694 offering potential profit at $1.10453. Traders should watch for a move above $1.10832 to signal a potential bullish reversal.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.10694
Take Profit – 1.10453
Stop Loss – 1.10838
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$241/ -$144
Profit & Loss Per Mini Lot = +$24/ -$14
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Mild Bullish Bias: EUR/USD trades above its pivot at $1.1184, eyeing resistance at $1.1214.
- Support Levels: Immediate support at $1.1171; break below could test $1.1150.
- Buy Strategy: Consider buying above $1.1184, targeting $1.1214 with a stop-loss at $1.1169.
EUR/USD is currently trading at $1.11937, reflecting a modest gain of 0.03% as it hovers above the pivot point at $1.1184. The pair has been in a steady upward trajectory, suggesting mild bullish sentiment in the near term.
Immediate resistance is observed at $1.1200, followed by $1.1214 and $1.1232, making these levels critical for further upward momentum. A break above $1.1214 could lead to a test of $1.1232, indicating a stronger bullish continuation.
On the downside, immediate support lies at $1.1171, with subsequent levels at $1.1150 and $1.1133. The 50-day Exponential Moving Average (EMA) is positioned at $1.1166, indicating that the pair is trading above its short-term trend line and suggesting continued bullish momentum.
However, the Relative Strength Index (RSI) is at 61, nearing overbought territory, which could limit further gains unless there is a strong catalyst, such as positive economic data from the Eurozone or dovish commentary from the Federal Reserve.
From a technical perspective, traders may consider long positions above $1.1184, targeting resistance at $1.1214 and setting a stop-loss around $1.1169 to manage risk.
The focus will be on key economic releases, such as the Eurozone inflation data and U.S. employment numbers, which could significantly influence the pair’s direction in the coming days.
For now, the EUR/USD remains supported above $1.1184, but any break below this pivot point could shift sentiment to bearish, bringing $1.1150 back into play as a key support level. Until then, the pair looks poised to test resistance levels as it sustains its upward momentum.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.11844
Take Profit – 1.12141
Stop Loss – 1.11696
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$301/ -$148
Profit & Loss Per Mini Lot = +$29/ -$14
EUR/USD Price Analysis – Sep 30, 2024
Daily Price Outlook
Despite the downbeat flash annual Consumer Price Index (CPI) data from six German states showing a continued slowdown in inflation, the EUR/USD currency pair is maintaining its upward momentum, climbing to around 1.1193 and even reaching an intra-day high of 1.1208.
This rise can be largely attributed to a weakening US dollar, which is losing strength as traders look ahead to Federal Reserve Chair Jerome Powell's upcoming speech at 17:00 GMT.
Easing Inflation in the Eurozone Sparks Rate Cut Speculation Ahead of ECB Meeting
On the EUR side, recent data indicates that six German states experienced a further slowdown in inflation for September, as the flash annual Consumer Price Index (CPI) showed a decline in price growth.
Although month-on-month inflation increased at a quicker pace than in August, it still fell within the modest 0.2% range.
Moreover, data released on Friday from France and Spain revealed that price pressures also rose at a slower-than-expected rate, strengthening the belief that inflation is easing across the Eurozone.
This trend could be a positive sign for consumers and the broader economy as it suggests that price stability is gradually returning.
This slowdown in inflation has sparked rising expectations that the European Central Bank (ECB) may cut interest rates in its upcoming meeting on October 17.
Market participants have ramped up their bets, now pricing in a roughly 75% chance of a rate cut, a significant increase from just 25% a week ago.
It's worth noting that the ECB had already lowered its Deposit Facility Rate by 25 basis points to 3.5% during its policy meeting on September 12.
These developments suggest that the central bank is closely monitoring economic conditions and may take further action to support growth.
Moving ahead, investors are anticipating the release of the preliminary Harmonized Index of Consumer Prices (HICP) data for Germany and the Eurozone later this week. Furthermore, ECB President Christine Lagarde's speech scheduled for 13:00 GMT today is expected to shed light on the potential interest rate cut trajectory for the rest of the year.
US Dollar Pressure and Potential Rate Cuts: Impact on EUR/USD Pair
On the US front, the broad-based US dollar is facing downward pressure as investors await Federal Reserve Chair Jerome Powell's speech scheduled for 17:00 GMT. Many are hoping for clues about possible interest rate cuts at the Fed's upcoming November meeting.
According to the CME FedWatch tool, there's currently a 41.6% chance of the Fed reducing interest rates by 50 basis points to a range of 4.25% to 4.50%.
However, this probability has slipped from about 53.0% last Friday, following the release of the August Personal Consumption Expenditures Price Index (PCE) report. On the data front, the latest PCE report revealed that annual inflation unexpectedly fell to 2.2%, down from July’s 2.5%.
This marks the lowest inflation reading since February 2021. However, core PCE inflation, which excludes volatile food and energy prices, rose to 2.7%, raising concerns about the need for cautious rate cuts moving forward.
Recently, Fed policymakers have shifted their focus toward preventing job losses and economic slowdowns, expressing confidence that inflation will eventually return to the 2% target.
As a result, investors are closely monitoring upcoming economic indicators, including the JOLTS Job Openings for August and the ADP Employment Change and Nonfarm Payrolls (NFP) figures for September, as these will provide valuable insights into the health of the labor market.
Therefore, the easing inflation in the US, alongside cautious Fed signals, may strengthen the EUR/USD pair as the probability of rate cuts increases, attracting investors seeking higher yields in the Eurozone.
EUR/USD - Technical Analysis
EUR/USD is currently trading at $1.11937, reflecting a modest gain of 0.03% as it hovers above the pivot point at $1.1184. The pair has been in a steady upward trajectory, suggesting mild bullish sentiment in the near term.
Immediate resistance is observed at $1.1200, followed by $1.1214 and $1.1232, making these levels critical for further upward momentum. A break above $1.1214 could lead to a test of $1.1232, indicating a stronger bullish continuation.
On the downside, immediate support lies at $1.1171, with subsequent levels at $1.1150 and $1.1133. The 50-day Exponential Moving Average (EMA) is positioned at $1.1166, indicating that the pair is trading above its short-term trend line and suggesting continued bullish momentum.
However, the Relative Strength Index (RSI) is at 61, nearing overbought territory, which could limit further gains unless there is a strong catalyst, such as positive economic data from the Eurozone or dovish commentary from the Federal Reserve.
From a technical perspective, traders may consider long positions above $1.1184, targeting resistance at $1.1214 and setting a stop-loss around $1.1169 to manage risk.
The focus will be on key economic releases, such as the Eurozone inflation data and U.S. employment numbers, which could significantly influence the pair’s direction in the coming days.
For now, the EUR/USD remains supported above $1.1184, but any break below this pivot point could shift sentiment to bearish, bringing $1.1150 back into play as a key support level. Until then, the pair looks poised to test resistance levels as it sustains its upward momentum.
Related News
GOLD Price Analysis – Sep 30, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate resistance is at $1.1183; a break above could target $1.1198 and $1.1214.
- Support is firm at $1.1154, with the 50 EMA at $1.1162 providing additional backing.
- RSI at 51 signals neutral momentum; a move above 60 could indicate a bullish shift.
The EUR/USD pair is currently trading at $1.11672, down 0.14% in today’s session, as traders remain cautious ahead of key macroeconomic data releases. The pair is hovering around the pivot point of $1.1164, a critical level that could dictate the direction of the next move.
Immediate resistance is seen at $1.1183, followed by $1.1198 and a more significant level at $1.1214. A breakout above these levels could trigger bullish momentum, driving the pair higher.
On the downside, immediate support lies at $1.1154, with further supports at $1.1140 and $1.1126. These levels will be crucial in maintaining the pair’s current uptrend.
The 50-day Exponential Moving Average (EMA) at $1.1162 is providing immediate support, aligning closely with the pivot point. A sustained move above this EMA could signal bullish continuation, while a break below could lead to a deeper correction.
The Relative Strength Index (RSI) is at 51, indicating neutral momentum. This suggests the pair could go either way, depending on how it interacts with immediate support and resistance levels. If the RSI rises above 60, it could indicate a stronger bullish trend. However, a dip below 50 could shift the sentiment to bearish.
In conclusion, EUR/USD is at a critical juncture, with the potential for both bullish and bearish scenarios.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.11637
Take Profit – 1.11938
Stop Loss – 1.11493
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$301/ -$144
Profit & Loss Per Mini Lot = +$30/ -$14
EUR/USD Price Analysis – Sep 27, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair continued its downward trend, remaining under pressure around the 1.1158 level and hitting an intra-day low of 1.1125. This decline is attributed to the renewed strength of the US dollar, which gained momentum following positive US economic data.
Meanwhile, the euro's performance against other major currencies remains weak, influenced by the release of the flash French Consumer Price Index (CPI) and the Spanish Harmonized Index of Consumer Prices (HICP), both of which indicated that price pressures increased at a slower-than-expected pace in September.
US Dollar Strengthens Amid Positive Economic Data, Pressuring EUR/USD Pair
Despite Fed's overall dovish outlook, the US dollar is gaining momentum as the recent positive economic data reflects the strength of the US economy. The Bureau of Economic Analysis (BEA) reported a notable 3% growth in the US economy for the second quarter, indicating robust economic performance.
This growth, along with other favorable indicators, has increased confidence among investors and traders in the dollar's prospects.
In addition to the GDP growth, new orders for durable goods remained flat in August. However, a closer look reveals that orders excluding transportation increased by 0.5%, signaling resilience in certain sectors of the economy.
This suggests that businesses are still making investments despite broader economic challenges.
Moreover, initial claims for unemployment benefits dropped to 218,000, the lowest level since mid-May, highlighting a strengthening labor market.
A decrease in unemployment claims typically signals improved job security and economic stability, further supporting the dollar's upward trajectory.
Collectively, these indicators paint a positive picture of the US economy, reinforcing the dollar's position against other currencies and fostering optimism among market participants. Thus, the strengthening US dollar, driven by positive economic data, puts downward pressure on the EUR/USD pair.
EUR/USD Losses Intensify Amid Weaker Eurozone Inflation Data
Apart from this, the losses in the EUR/USD pair were further bolstered by the recent economic data indicating weaker inflation in the Eurozone. The flash French Consumer Price Index (CPI) showed an annual increase of only 1.5%, falling short of the expected 1.9% and significantly lower than the previous reading of 2.2%. On a monthly basis, the CPI also experienced a sharper decline of 1.2%, compared to the anticipated decrease of 0.8%.
Similarly, Spain's Harmonized Index of Consumer Prices (HICP) revealed an annual rise of just 1.7%, below the forecast of 1.9% and down from 2.4% in August, while the monthly HICP dropped by 0.1%, diverging from expectations for it to remain stable.
These disappointing inflation figures have heightened expectations that the European Central Bank (ECB) may implement another interest rate cut at its upcoming October meeting, marking the third reduction in its current policy-easing cycle that commenced in June.
With inflation pressures decelerating in both France and Spain, investors are now closely monitoring the preliminary German and Eurozone HICP data set to be released on Monday and Tuesday. The results of these reports will likely influence future ECB policy decisions and the trajectory of the EUR/USD pair.
EUR/USD - Technical Analysis
The EUR/USD pair is currently trading at $1.11672, down 0.14% in today’s session, as traders remain cautious ahead of key macroeconomic data releases. The pair is hovering around the pivot point of $1.1164, a critical level that could dictate the direction of the next move.
Immediate resistance is seen at $1.1183, followed by $1.1198 and a more significant level at $1.1214. A breakout above these levels could trigger bullish momentum, driving the pair higher.
On the downside, immediate support lies at $1.1154, with further supports at $1.1140 and $1.1126. These levels will be crucial in maintaining the pair’s current uptrend.
The 50-day Exponential Moving Average (EMA) at $1.1162 is providing immediate support, aligning closely with the pivot point. A sustained move above this EMA could signal bullish continuation, while a break below could lead to a deeper correction.
The Relative Strength Index (RSI) is at 51, indicating neutral momentum. This suggests the pair could go either way, depending on how it interacts with immediate support and resistance levels.
If the RSI rises above 60, it could indicate a stronger bullish trend. However, a dip below 50 could shift the sentiment to bearish.
In conclusion, EUR/USD is at a critical juncture, with the potential for both bullish and bearish scenarios.
Related News
GOLD Price Analysis – Sep 27, 2024
EUR/USD Price Analysis – Sep 25, 2024
Daily Price Outlook
During the European trading session on Wednesday, the EUR/USD pair climbed to approximately 1.1195, buoyed by a weakening US dollar amid growing speculation of a significant rate cut from the Federal Reserve in November. Market attention is focused on the upcoming releases of France’s Consumer Confidence and US New Home Sales data.
Meanwhile, Fed Governor Adriana Kugler is scheduled to speak. However, expectations of a potential interest rate cut from the European Central Bank (ECB) or any indications of economic weakness in the Eurozone may limit the Euro's (EUR) upward momentum against the USD.
USD Weakness and Fed Speculation Boost EUR/USD Outlook
On the US front, the US dollar (USD) is weakening as speculation grows about a significant rate cut from the Federal Reserve (Fed) in November. The Fed recently reduced its benchmark Federal Funds Rate by half a percentage point, bringing it to a range of 4.75% to 5%.
This decision was made due to progress on inflation and the changing balance of risks. As a result, investors are increasingly betting that the Fed will cut rates further in the upcoming meeting.
According to the CME FedWatch Tool, the market is pricing in a nearly 56% chance of a second 50 basis points (bps) rate cut in November, while the likelihood of a smaller 25 bps cut is around 44%. This uncertainty is adding pressure on the USD, making it less attractive to investors.
In addition to this, France’s Consumer Confidence and US New Home Sales data will be released on Wednesday, and Fed Governor Adriana Kugler is also set to speak, potentially influencing market sentiment further.
Therefore, the weakening US dollar due to speculation of further Fed rate cuts supports the EUR/USD pair, pushing it higher. Increased investor confidence in the Eurozone, coupled with upcoming economic data, could strengthen the Euro against the USD in the short term.
Euro Gains Amid Upbeat Market Sentiment, but ECB Rate Cut Concerns Loom
On the EUR front, the upbeat market sentiment is currently boosting the Euro (EUR) against the US dollar (USD). However, concerns about a potential interest rate cut by the European Central Bank (ECB) could limit the Euro's gains. ECB governing council member Klaas Knot stated that the bank plans to continue lowering interest rates at least through the first half of 2025, targeting a range between 2% and 3%. This indicates that further easing could be on the horizon.
Moreover, ECB policymaker Madis Muller mentioned that another interest rate cut next month cannot be ruled out. However, he emphasized that policymakers may not have enough data to make clear decisions regarding the struggling Eurozone economy.
This uncertainty could weigh on the Euro's performance. As a result, while the Euro benefits from the current risk appetite, any signs of weakness in the Eurozone or hints of additional ECB rate cuts may cap its upside against the USD.
EUR/USD - Technical Analysis
The EUR/USD pair is trading at $1.11872, up 0.07%, as it consolidates near recent highs. A break above the pivot point at $1.11983 could signal further bullish momentum, especially as traders eye immediate resistance at $1.12153. Additional resistance levels to watch include $1.12309 and $1.12485, which, if breached, could drive the pair higher in the short term.
On the downside, the immediate support level rests at $1.11618, followed by deeper supports at $1.11509 and $1.11350. The 50-day Exponential Moving Average (EMA), currently positioned at $1.11418, offers a strong support base, signaling a bullish outlook as long as the price remains above this average.
The Relative Strength Index (RSI) is currently at 65, indicating a bullish trend, but a move above 70 would signal overbought conditions, potentially leading to short-term profit-taking.
For short-term traders, a buy limit order around $1.11770 could provide an attractive entry point, targeting a take-profit level at $1.12153, with a conservative stop-loss set at $1.11626. This setup provides a balanced approach, capitalizing on upward momentum while safeguarding against downside risk.
Related News
- GOLD Price Analysis – Sep 25, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate Resistance at $1.12153; breaking higher could target $1.12309.
- Immediate Support at $1.11618; the 50-day EMA at $1.11418 offers strong support.
- RSI at 65 indicates bullish momentum but could near overbought territory if it rises further.
The EUR/USD pair is trading at $1.11872, up 0.07%, as it consolidates near recent highs. A break above the pivot point at $1.11983 could signal further bullish momentum, especially as traders eye immediate resistance at $1.12153. Additional resistance levels to watch include $1.12309 and $1.12485, which, if breached, could drive the pair higher in the short term.
On the downside, the immediate support level rests at $1.11618, followed by deeper supports at $1.11509 and $1.11350. The 50-day Exponential Moving Average (EMA), currently positioned at $1.11418, offers a strong support base, signaling a bullish outlook as long as the price remains above this average.
The Relative Strength Index (RSI) is currently at 65, indicating a bullish trend, but a move above 70 would signal overbought conditions, potentially leading to short-term profit-taking.
For short-term traders, a buy limit order around $1.11770 could provide an attractive entry point, targeting a take-profit level at $1.12153, with a conservative stop-loss set at $1.11626. This setup provides a balanced approach, capitalizing on upward momentum while safeguarding against downside risk.
EUR/USD - Trade Ideas
Entry Price – Buy Limit 1.11770
Take Profit – 1.12153
Stop Loss – 1.11626
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$383/ -$144
Profit & Loss Per Mini Lot = +$38/ -$14
EUR/USD Price Analysis – Sep 23, 2024
Daily Price Outlook
During the European trading session, the EUR/USD extended its downward trend, dropping to the 1.1111 level and hitting an intra-day low of 1.1083. This decline was primarily driven by disappointing German economic data, which weighed heavily on the pair.
The downturn in Germany’s manufacturing sector worsened in September, while services sector activity also suffered, as highlighted by the preliminary HCOB business activity report.
Moreover, the European Central Bank’s cautious approach to monetary policy and uncertainty about the eurozone’s economic outlook further dampened investor confidence.
In the meantime, the renewed mild strength in the US dollar ahead of US Purchasing Managers Index (PMI) also played a major role in pushing the EUR/USD pair lower.
Economic Challenges in Germany and Their Impact on the EUR/USD Pair
On the EUR front, Germany's manufacturing sector is facing significant challenges, with a downturn worsening in September.
The HCOB Manufacturing PMI fell to 40.3 this month, down from 42.4 in August and below the expected 42.4. This marks a yearly low for the sector, indicating a slowdown in manufacturing activity.
In addition, the services sector is also struggling, as shown by a decline in the Services PMI from 51.2 in August to 50.6 in September, falling short of the forecasted 51.0.
The HCOB Preliminary German Composite Output Index came in at 47.2, lower than the expected 48.2 and down from 48.4 in August, reaching its weakest point in seven months.
These figures highlight the ongoing economic difficulties in Germany, raising concerns about the overall health of the eurozone economy.
Therefore, the worsening manufacturing and services data in Germany raises concerns about economic stability, likely putting downward pressure on the EUR/USD pair as investors anticipate further challenges for the eurozone economy.
Impact of ECB's Flexible Monetary Policy on EUR/USD Pair
Moreover, European Central Bank President Christine Lagarde emphasized the need for flexible monetary policy in her recent speech. She stated that while the main goal of maintaining price stability remains the same, central banks must adapt to the rapidly changing global economy.
This flexibility is crucial for effectively addressing various challenges. By highlighting this, Lagarde acknowledges the current uncertainties in the market and the importance of adjusting policies to ensure economic stability and support growth in the eurozone.
Therefore, the Lagarde's focus on flexible monetary policy may lead to uncertainty about the ECB's future actions, likely putting downward pressure on the EUR/USD pair as traders reassess the euro's strength.
EUR/USD - Technical Analysis
The EUR/USD pair is currently trading at $1.11625, marking a flat session with minimal movement. The market is in a phase of consolidation, with a neutral bias, though technical indicators suggest the potential for further upside in the coming sessions.
The key to unlocking the next move lies around the pivot point at $1.1199. Should the pair break above this level, immediate resistance awaits at $1.1181, followed by stronger barriers at $1.1210 and $1.1241.
On the downside, the first line of support is at $1.1118, with deeper supports at $1.1094 and $1.1067.
The technical indicators support a cautious bullish outlook. The Relative Strength Index (RSI) stands at 58, indicating positive momentum but not yet overbought territory, leaving room for further gains.
Meanwhile, the 50-day Exponential Moving Average (EMA) is positioned at $1.1103, providing a solid foundation for the pair. As long as the EUR/USD remains above this level, the overall trend favors the bulls.
In terms of trade strategy, a buy-above approach seems prudent, with an entry point at $1.11466. A reasonable profit target would be the pivot level of $1.11988, with a stop-loss set at $1.11174 to mitigate downside risk.
Given the relative calm in the market, the focus will be on whether the pair can gather enough momentum to break through resistance levels and sustain any rally.
Related News
GOLD Price Analysis – Sep 23, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD is consolidating near $1.11625, with resistance at $1.1181 and pivot at $1.1199.
- RSI at 58 signals mild bullish momentum, with room for further gains.
- The 50-day EMA at $1.1103 provides critical support, maintaining the bullish bias.
The EUR/USD pair is currently trading at $1.11625, marking a flat session with minimal movement. The market is in a phase of consolidation, with a neutral bias, though technical indicators suggest the potential for further upside in the coming sessions.
The key to unlocking the next move lies around the pivot point at $1.1199. Should the pair break above this level, immediate resistance awaits at $1.1181, followed by stronger barriers at $1.1210 and $1.1241.
On the downside, the first line of support is at $1.1118, with deeper supports at $1.1094 and $1.1067.
The technical indicators support a cautious bullish outlook. The Relative Strength Index (RSI) stands at 58, indicating positive momentum but not yet overbought territory, leaving room for further gains.
Meanwhile, the 50-day Exponential Moving Average (EMA) is positioned at $1.1103, providing a solid foundation for the pair. As long as the EUR/USD remains above this level, the overall trend favors the bulls.
In terms of trade strategy, a buy-above approach seems prudent, with an entry point at $1.11466. A reasonable profit target would be the pivot level of $1.11988, with a stop-loss set at $1.11174 to mitigate downside risk.
Given the relative calm in the market, the focus will be on whether the pair can gather enough momentum to break through resistance levels and sustain any rally.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.11466
Take Profit – 1.11988
Stop Loss – 1.11174
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$522/ -$292
Profit & Loss Per Mini Lot = +$52/ -$29