Daily Price Outlook

The EUR/USD, often termed the "Fiber" in trading parlance, has been a critical barometer of the U.S. and Eurozone economic strengths. As of this analysis for October 18, the pair is trading at 1.05777, marking a modest ascent of 0.17% in the last 24 hours.

Our immediate pivot point is identified at 1.0596. In terms of resistance, traders should cast their eyes on 1.0632, followed by a more challenging ceiling at 1.0672, and possibly up to 1.0713. On the flip side, supports are solidly placed at 1.0535, dipping further to 1.0496, and then a more substantial floor near 1.0454.

In the technicals, the RSI stands at 56, leaning more towards a bullish sentiment as it's above the 50 threshold, yet not in the overbought territory. The MACD provides further bullish confirmation, with its line being above the signal, hinting at potential upward momentum. Additionally, the current price comfortably sits above the 50 EMA, located at 1.0559, further endorsing the bullish narrative in the short term.

In terms of chart patterns, while none is explicitly stated, traders should remain vigilant for any emerging patterns or structures that may offer additional insights into future price direction.

For now, the trend for EUR/USD appears bullish, especially as prices maintain above the 1.0559 mark

EUR/USD - Trade Idea

Entry Price – Buy Limit 1.05599

Take Profit – 1.06309

Stop Loss – 1.05020

Risk to Reward – 1: 1.25

Profit & Loss Per Standard Lot = +$710/ -$579

Profit & Loss Per Micro Lot = +$71/ -$57

Daily Price Outlook

The EUR/USD currency pair continued its lackluster performance on Wednesday, as it witnessed a decline to approximately 1.0550 against the US Dollar. However, this dip can be attributed to the selling pressure on the Euro, which resulted in marginal losses in its value when compared to the US Dollar. Concurrently, European stocks faced a challenging day, with many of them ending in the "red," signaling losses in their values.

However, this downward movement was partially influenced by the strength of the US Dollar, as the USD Index (DXY) maintained its bullish trend in the low 106.00s.

US Dollar Holds Steady Amid Global Uncertainty and Fed Expectations

It's noteworthy that the US Dollar, as gauged by the USD Index (DXY), is holding its ground in the low 106.00s. This stability comes amid uncertain global market conditions, reflecting a prevailing sense of caution due to escalating geopolitical risks. In the meantime, investors anticipate the Federal Reserve (Fed) will maintain its current stance of keeping interest rates unchanged for the remainder of the year.

Looking ahead to the upcoming economic data, investors will keep a close eye on the weekly Mortgage Applications, as well as Housing Starts and Building Permits. These are expected to be important topics of discussion within the housing sector.

Speculation About ECB Policy Pause and Impact on EUR/USD

Moreover, there is ongoing speculation surrounding whether the European Central Bank (ECB) might decide to refrain from making adjustments to its policies. This is occurring despite inflation surpassing the bank's target, and there is a growing concern about the potential for an economic downturn or the emergence of stagflation, which is a combination of stagnation and inflation, within the European region.

On the data front, the latest inflation rate for September in the broader Eurozone revealed that the Consumer Price Index (CPI) increased by 4.3% compared to the previous year. When we exclude the costs of food and energy, which is known as Core CPI, the rate surged even higher to 4.5% on a year-over-year basis. Investors are now speculating that the European Central Bank (ECB) might delay its plans to tighten monetary policy until the third quarter of 2024.

Therefore, the speculation of the ECB pausing policy adjustments, even in the face of elevated inflation and economic worries, may potentially undermine the Euro (EUR) and influence the EUR/USD pair, potentially shifting it in favor of the US Dollar (USD).

EUR/USD - Technical Analysis

The EUR/USD, often termed the "Fiber" in trading parlance, has been a critical barometer of the U.S. and Eurozone economic strengths. As of this analysis for October 18, the pair is trading at 1.05777, marking a modest ascent of 0.17% in the last 24 hours.

Our immediate pivot point is identified at 1.0596. In terms of resistance, traders should cast their eyes on 1.0632, followed by a more challenging ceiling at 1.0672, and possibly up to 1.0713. On the flip side, supports are solidly placed at 1.0535, dipping further to 1.0496, and then a more substantial floor near 1.0454.

In the technicals, the RSI stands at 56, leaning more towards a bullish sentiment as it's above the 50 threshold, yet not in the overbought territory. The MACD provides further bullish confirmation, with its line being above the signal, hinting at potential upward momentum. Additionally, the current price comfortably sits above the 50 EMA, located at 1.0559, further endorsing the bullish narrative in the short term.

In terms of chart patterns, while none is explicitly stated, traders should remain vigilant for any emerging patterns or structures that may offer additional insights into future price direction.

For now, the trend for EUR/USD appears bullish, especially as prices maintain above the 1.0559 mark

Related News

Daily Price Outlook

The EUR/USD currency pair began the week positively, rebounding from a one-week low just below the psychological mark of 1.0500 after two consecutive days of losses. This upward trend is largely attributed to the lackluster performance of the US Dollar, which, in turn, is providing some support to the EUR/USD pair. In contrast to this, there is still the expectation of at least one more interest rate hike by the Federal Reserve in 2023, which is good news for the dollar and could limit the euro's upward momentum.

Another factor that could cap further gains in the EUR/USD pair is the belief that the European Central Bank won't be raising interest rates in the near term. This may prevent bullish movements in the shared currency. So, while the EUR/USD pair has shown some positive momentum, it's crucial to exercise caution when making significant predictions.

Factors Influencing the US Dollar and EUR/USD Pair

The broad-based US dollar struggled to maintain its upward momentum on Monday. Despite gaining strength due to recent US Consumer Price Index (CPI) data, it failed to capitalize on those gains. This lack of a clear upward trend offered some support to the EUR/USD pair. However, the reason for its mixed stance is the expectation that the Federal Reserve (Fed) will maintain higher interest rates for an extended period. This expectation was reinforced by the latest US consumer inflation data released last Thursday, which exceeded the Fed's target and kept the possibility of at least one more Fed rate increase in 2023 alive.

Despite experiencing downward pressure, the US dollar is managing to mitigate its losses thanks to several factors. These include elevated US Treasury bond yields, dovish comments from Fed officials suggesting that interest rates may remain unchanged for a second consecutive month in November, and a positive outlook in the US equity futures market, which is weakening the dollar's safe-haven appeal. However, speculation that the European Central Bank (ECB) will not raise rates anytime soon is limiting the gains for the EUR/USD pair.

European Central Bank's Stance and Christine Lagarde's Caution

On the other hand, the European Central Bank (ECB) made it clear in September that their recent interest rate hike, the 10th in a 14-month-long battle against inflation, is likely the last one for now. Additionally, ECB policymakers expressed cautious optimism last week, indicating that they believe inflation might return to 2% without requiring further rate hikes.

Furthermore, ECB President Christine Lagarde addressed the International Monetary Fund's meeting over the weekend. She noted that if the impact of monetary policy proves to be more potent than anticipated, or if the global economy further weakens and geopolitical risks escalate, it could potentially impede economic growth. This cautious statement is essential for those who are speculating on the EUR/USD increase.

EUR/USD - Technical Analysis

On October 16, the EUR/USD currency pair marked a value of 1.05248, illustrating a marginal ascent of 0.20%. Over a four-hour chart timeframe, critical data points emerge, illuminating potential future movements.

Starting with pivotal data points, the pair's current pivot point stands at 1.05495. Looking ahead, resistance levels manifest at 1.06018, 1.06912, and 1.07457. Conversely, support tiers for the asset are marked at 1.04558, followed closely by 1.04035 and extending to 1.0312.

Delving into the technical indicators, the Relative Strength Index (RSI) registers at 41, which, while not indicating overbought conditions, suggests the pair is leaning toward the bearish spectrum. The Moving Average Convergence Divergence (MACD) showcases a value of -0.0009, with its signal counterpart at -0.0014. This alignment hints at the MACD line having recently ventured above the signal line, insinuating possible upcoming bullish momentum.

Furthermore, the 50-Day Exponential Moving Average (EMA) posts a value of 1.05601. Interestingly, the current price lies below this EMA value. Traditionally, when a price positions itself below the 50 EMA, it often indicates a short-term bearish trend. Therefore, traders should tread cautiously and monitor subsequent movements closely.

Related News

Daily Price Outlook

During the European session, the EUR/USD currency pair maintained its upward trajectory, hovering above the 1.0540 level. However, this uptrend is being supported by a weakness in the US dollar. It should be noted that the concerns surrounding future interest rate hikes by the Federal Reserve have played a major in undermining the US dollar. These concerns are exerting downward pressure on US bond yields and the dollar. Moreover, traders appear hesitant to place strong bullish bets on the euro, possibly due to expectations that the European Central Bank will refrain from further rate increases.

Factors Behind EUR/USD's Recent Volatility

It's important to highlight that on Thursday, the EUR/USD pair witnessed its most significant one-day decline since early October. This drop occurred in response to the release of US consumer inflation data, which raised expectations of another Federal Reserve interest rate hike in 2023. This, in turn, bolstered demand for the US Dollar. Both the headline and Core Consumer Price Index (CPI) figures remained above the Federal Reserve's 2% target, signaling the potential for further tightening of monetary policy.

Although, the losses in the pair were short-lived as it swiftly regained its lost strength amid the recent comments from some Fed officials suggesting that the central bank may be nearing the end of its rate hike cycle, which is keeping a lid on US bond yields and preventing the USD from building on its recent recovery. Furthermore, the modest increase in US equity futures is weakening the safe-haven appeal of the dollar and providing some support for the EUR/USD pair.

ECB's Cautious Stance and Upcoming Market Drivers

Furthermore, European Central Bank (ECB) policymakers have cautiously expressed hope that inflation will reach 2%, even without additional rate hikes. In September, the ECB hinted that its 10th rate hike in a year-long battle against inflation would likely be its last. At the same time, the worry about the economy slowing down and the fear of a recession looming make it less likely for the ECB to raise rates again. This was seen as one of the key factors that kept the lid on any additional gains in the EUR/USD pair.

Looking forward, traders are paying attention to comments from ECB President Christine Lagarde at the World Bank Group and the International Monetary Fund Annual Meeting in Morocco, as her remarks may affect the shared currency and provide momentum to the EUR/USD pair. Besides, they will keep an eye on a speech by Philadelphia Fed President Patrick Harker and the preliminary Michigan Consumer Sentiment Index, which will influence demand for the US dollar.

EUR/USD - Technical Analysis

The EUR/USD pair, as of October 13, stands at 1.05442, reflecting a slight increase of +0.14% over the past 24 hours. This analysis is grounded in a 4-hour chart timeframe.

Pivotal to its price movement is the identified pivot point at 1.0545. From here, traders can anticipate several key resistance and support levels. The immediate resistance hovers at 1.0641, with further resistances at 1.0695 and 1.0793.

Conversely, if the pair retreats, immediate support could be found at 1.0489, followed by stronger supports at 1.0394 and 1.0337.

A glance at the technical indicators furnishes us with additional insights. The Relative Strength Index (RSI) is currently at 42, suggesting a neutral sentiment. The 50-Day Exponential Moving Average (EMA) stands at 1.0570. It's noteworthy that the price is below the 50 EMA, which implies a short-term bearish trend.

Chart patterns are also crucial in predicting future price movements. Currently, the EUR/USD has shown an upward channel breakout at 1.0540. This breakout, combined with the 50 EMA positioning, suggests a selling trend.

In conclusion, the overall trend for the EUR/USD is bearish, particularly if it remains below the 1.0570 mark. Conversely, if the asset surpasses this threshold, we might witness a bullish turn. For the short term, traders should be vigilant for potential fluctuations around these mentioned levels.

Related News

Daily Price Outlook

The EUR/USD pair, as of October 13, stands at 1.05442, reflecting a slight increase of +0.14% over the past 24 hours. This analysis is grounded in a 4-hour chart timeframe.

Pivotal to its price movement is the identified pivot point at 1.0545. From here, traders can anticipate several key resistance and support levels. The immediate resistance hovers at 1.0641, with further resistances at 1.0695 and 1.0793.

Conversely, if the pair retreats, immediate support could be found at 1.0489, followed by stronger supports at 1.0394 and 1.0337.

A glance at the technical indicators furnishes us with additional insights. The Relative Strength Index (RSI) is currently at 42, suggesting a neutral sentiment. The 50-Day Exponential Moving Average (EMA) stands at 1.0570. It's noteworthy that the price is below the 50 EMA, which implies a short-term bearish trend.

Chart patterns are also crucial in predicting future price movements. Currently, the EUR/USD has shown an upward channel breakout at 1.0540. This breakout, combined with the 50 EMA positioning, suggests a selling trend.

In conclusion, the overall trend for the EUR/USD is bearish, particularly if it remains below the 1.0570 mark. Conversely, if the asset surpasses this threshold, we might witness a bullish turn. For the short term, traders should be vigilant for potential fluctuations around these mentioned levels.

EUR/USD - Trade Idea

Entry Price – Sell Limit 1.05689

Take Profit – 1.05275

Stop Loss – 1.06103

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$414/ -$414

Profit & Loss Per Micro Lot = +$41/ -$41

Daily Price Outlook

The EUR/USD currency pair, as indicated by the 4-hour chart, is trading at 1.0605. It finds its pivot point at 1.05445. On the upside, immediate resistance stands at 1.06413, with further resistances at 1.06974 and 1.07942. Conversely, the pair sees support at 1.04907, with subsequent levels at 1.03939 and 1.03389.

The Relative Strength Index (RSI) records a value of 59.58, signaling a healthy bullish momentum without reaching the overbought territory.

The MACD, with a reading of 0.00048, is slightly below its signal line, marked at 0.00207, hinting at a potential pause in the bullish momentum.

Importantly, the EUR/USD's current price is perched above the 50-day Exponential Moving Average (EMA) of 1.05612, emphasizing its short-term bullish trajectory.

EUR/USD - Trade Idea

Entry Price – Sell Limit 1.0617

Take Profit – 1.0559

Stop Loss – 1.0651

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$577/ -$336

Profit & Loss Per Micro Lot = +$57/ -$33

Daily Price Outlook

The EUR/USD currency pair managed to extned its upward rally and still showing positive momentum, hovering around 1.0610 level on Wednesday. However, the reason for its upward movement can be attributed to the weakening US Dollar, which was being pressured by the cautious comments from Federal Reserve officials, who are adopting a more dovish stance. Hence, the shared currency is gaining strength against the US Dollar. The US Dollar is becoming less valuable due to concerns expressed by Fed officials.

Fed Concerns and Upcoming Economic Data Impact on EUR/USD Pair

Federal Reserve (Fed) officials have recently voiced concerns about the potential challenges posed by higher long-term US bond yields on future interest rate adjustments. Atlanta's Fed President, Raphael Bostic, has expressed his view that the current monetary policy is already relatively restrictive, indicating that he doesn't see a necessity for further interest rate hikes.

As a result, the US Dollar has been on a downward trajectory, currently trading around 105.70. Despite the small recovery in US Treasury yields, the US dollar has been facing challenges. The 10-year US Treasury bond yield stands at 4.64%, which is slightly lower than previously. It is also worth noting that the decine in the US dollar began last week.

Investors are monitoring economic data, with attention to inflation indicators. Notably, the focus will be on the Producer Price Index (PPI) coming out on Wednesday, and the release of the FOMC meeting minutes and the Consumer Price Index (CPI) on Thursday. These reports will provide further understandings regarding the Fed's decision-making.

ECB's Caution and German Yields Impact on EUR/USD Pair

On the flip side, the rise in German bond yields was seen as a one of the key factor that hindering the upward momentum of the EUR/USD pair. This is due to anticipation that the European Central Bank will stop its interest rate hikes. These anticipation arise after the member of the European Central Bank, Francois Villeroy de Galhau, said that raising interest rates further is not the right thing to do for now.

During an interview with a French newspaper, ECB President Christine Lagarde said that the ECB's main interest rates are currently at a level that, if they remain there for some time, will help bring inflation back to the desired 2%. She's confident about achieving this target. Lagarde is also optimistic about Europe's gas reserves. Predictions indicate that Germany's inflation might slow down, which makes it less likely for the ECB to alter interest rates.

Therefore, this news could limit the EUR/USD pair's upward movement as expectations of the ECB pausing interest rate hikes and slowing German inflation may weigh on the Euro.

EUR/USD - Technical Analysis

The EUR/USD currency pair, as indicated by the 4-hour chart, is trading at 1.0605. It finds its pivot point at 1.05445. On the upside, immediate resistance stands at 1.06413, with further resistances at 1.06974 and 1.07942. Conversely, the pair sees support at 1.04907, with subsequent levels at 1.03939 and 1.03389.

The Relative Strength Index (RSI) records a value of 59.58, signaling a healthy bullish momentum without reaching the overbought territory.

The MACD, with a reading of 0.00048, is slightly below its signal line, marked at 0.00207, hinting at a potential pause in the bullish momentum.

Importantly, the EUR/USD's current price is perched above the 50-day Exponential Moving Average (EMA) of 1.05612, emphasizing its short-term bullish trajectory.

Related News

Daily Price Outlook

During the European session on Monday, the EUR/USD pair failed to stop its bearish trend and remained on a downward path. It hovered around 1.0530 level. However, the primary reason behind this decline is heightened risk aversion triggered by the ongoing conflict between Palestine and Israel. Investors tend to flock to the US Dollar during such uncertain times, elevating its value. Furthermore, the robust US job data further strengthened the appeal of the US Dollar, adding to the pressure on the Euro. On the flip side, the Euro faced challenges following mixed reports on Germany's industrial sector. Consequently, the EUR/USD pair experienced a 0.55% decline, trading at 1.0531 currently.

Economic Developments and Lagarde's Influence on EUR/USD

It is worth noting that Christine Lagarde, the President of the European Central Bank (ECB), believes that maintaining the current ECB interest rates for a prolonged period will help bring inflation back to the target of 2%. She expressed confidence in Europe's gas reserves situation as well. Hence, Lagarde's stance on interest rates and confidence in gas reserves might help EUR/USD pair to limit its deeper losses.

At the data front, official reports reveal that Germany's industrial production in August fell more than expected, indicating a sluggish manufacturing sector. The monthly drop was 0.2%, worse than the anticipated -0.1% and an improvement from July's -0.6%. On an annual basis, industrial production in Germany declined by 2.0% in August, compared to a 1.7% decrease in July. This news has led to the Euro losing ground against the US Dollar, with the EUR/USD pair down 0.55% for the day, trading at 1.0531 as of now.

Global Factors Affecting EUR/USD: US Jobs Report and Geopolitical Tensions

Across the ocean, the US jobs report for September impacted the EUR/USD pair. Initially, it pushed the pair down due to better-than-expected job growth, with 336,000 new jobs against an expected 170,000. However, the Euro gained ground later.

On the other side, the conflict in the Middle East involving Hamas and Israel is closely watched, causing market worries about potential wider repercussions. The US Dollar Index (DXY) bounced back due to higher US Treasury yields, sitting at around 106.30. Investors are also eyeing the IMF meeting and the US Core Producer Price Index later this week for economic insights.

EUR/USD - Technical Analysis

The EUR/USD currency pair, often closely watched by forex traders, has witnessed notable movement recently. As of the latest data, this pair is trading at 1.07189. A deeper dive into its 4-hour chart reveals significant price levels that traders should be mindful of. The pair's pivot point is currently situated at 1.0648. On the upside, resistance is expected at 1.0808, followed by subsequent resistances at 1.1040 and 1.1201. Conversely, should the pair take a bearish turn, immediate support is pegged at 1.0413, with additional supports waiting at 1.0252 and 1.0021.

From a technical analysis perspective, the Relative Strength Index (RSI) provides crucial insights, currently recording a value of 41.02. Generally, an RSI below 50 leans towards a bearish sentiment, hinting that sellers might be gaining some ground. However, there's a glimmer of hope for bulls as the Moving Average Convergence Divergence (MACD) value of 0.00067 against its signal value of -0.00678 suggests potential bullish momentum in the near term. This divergence often hints at possible upward price shifts. Moreover, the 50-Day Exponential Moving Average (EMA), a valuable tool for gauging short-term price trends, stands at 1.0538. As the current trading price hovers above this EMA, it may suggest that the bullish sentiment could continue in the near term.

On the charting front, the EUR/USD pair's trajectory indicates that it might find a robust support level near 1.0538. Successfully maintaining a stance above this crucial level would be vital for the currency pair to affirm its short-term bullish momentum. In wrapping up, while the immediate trend for the EUR/USD seems optimistic, traders should always be alert to global economic fluctuations and events, which can introduce unexpected volatility into the mix.

Related News:

Daily Price Outlook

The EUR/USD currency pair, often closely watched by forex traders, has witnessed notable movement recently. As of the latest data, this pair is trading at 1.07189. A deeper dive into its 4-hour chart reveals significant price levels that traders should be mindful of. The pair's pivot point is currently situated at 1.0648. On the upside, resistance is expected at 1.0808, followed by subsequent resistances at 1.1040 and 1.1201. Conversely, should the pair take a bearish turn, immediate support is pegged at 1.0413, with additional supports waiting at 1.0252 and 1.0021.

From a technical analysis perspective, the Relative Strength Index (RSI) provides crucial insights, currently recording a value of 41.02. Generally, an RSI below 50 leans towards a bearish sentiment, hinting that sellers might be gaining some ground. However, there's a glimmer of hope for bulls as the Moving Average Convergence Divergence (MACD) value of 0.00067 against its signal value of -0.00678 suggests potential bullish momentum in the near term. This divergence often hints at possible upward price shifts. Moreover, the 50-Day Exponential Moving Average (EMA), a valuable tool for gauging short-term price trends, stands at 1.0538. As the current trading price hovers above this EMA, it may suggest that the bullish sentiment could continue in the near term.

On the charting front, the EUR/USD pair's trajectory indicates that it might find a robust support level near 1.0538. Successfully maintaining a stance above this crucial level would be vital for the currency pair to affirm its short-term bullish momentum. In wrapping up, while the immediate trend for the EUR/USD seems optimistic, traders should always be alert to global economic fluctuations and events, which can introduce unexpected volatility into the mix.

EUR/USD - Trade Idea

Entry Price – Buy Limit 1.05388

Take Profit – 1.06000

Stop Loss – 1.05044

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$612/ -$344

Profit & Loss Per Micro Lot = +$61/ -$34

Daily Price Outlook

Despite positive economic data from Germany, the EUR/USD currency pair is y moving lower after two days of gains. It is now trading slightly lower at around 1.0540 during the European session on Friday. However, this drop could be because the European Central Bank (ECB) is expected to keep its current interest rates unchanged, which is weighing on the shared currency and contributing to the EUR/USD pair losses. Meanwhile, the broad-based US Dollar strength has played its major role in undermining the EUR/USD currency pair.

Notably, the EUR/USD pair is facing downward pressure before the release of US economic data. As of now, the EUR/USD pair is down by 0.09% on the day, trading at 1.0535.

German Industrial Orders Improve, ECB's Future Stance on Rates

According to data from the Federal Statistics Office of Germany, factory orders in August bounced back strongly, indicating a positive trend in the country's manufacturing sector. On a monthly basis, orders for German-made goods surged by 3.9%, surpassing expectations of a 1.8% increase and reversing a previous decline of -11.3%.

Industrial orders in Germany showed a notable improvement in August when we compare them to the same period last year. In August, they declined by 4.2%, which represents a significant improvement compared to the steep 10.1% drop observed in July. Additionally, Germany's trade surplus for August did experience a slight dip, decreasing from €17.7 billion in July to €16.6 billion. However, it still exceeded the market's anticipated figure of €15.0 billion.

Looking ahead, the European Central Bank (ECB) is expected to keep its current interest rates unchanged at 4.50% in the upcoming meeting later this month. Insights from ECB Governing Council member Mario Centeno on Wednesday indicated that inflation in the Eurozone is declining faster than previously expected. This suggests that the current rate cycle may have come to an end given the prevailing economic conditions.

US Dollar Rebounds and Treasury Yields Hold Steady: Impact on EUR/USD

Furthermore, the broad-based US dollar, measured by the US Dollar Index (DXY), is making a comeback, currently trading at around 106.50. This follows a recent climb to an 11-month high earlier in the week. US Treasury yields are holding steady, hanging near their highest levels in years. Investors are being cautious due to the US Federal Reserve's (Fed) tough stance on interest rates. The 10-year US Treasury yield is still above 4.70%, close to its highest since 2007.

On the data front, US Initial Jobless Claims for the week ending September 29 increased slightly to 207K, surpassing the expected 210K. On a positive note, US Challenger Job Cuts decreased significantly from 75.151K to 47.457K in September. Investors are waiting for the upcoming release of US Nonfarm Payrolls and Average Hourly Earnings, expected to confirm the strong job market. Good numbers might boost the US dollar and increase losses in the EUR/USD pair.

EUR/USD - Technical Analysis

As of October 6, the EUR/USD pair trades at 1.07179, a key point evident in the 4-hour chart. The pivot point for this currency pair stands at 1.0646. In the event of a bullish drive, traders should be observant of the immediate resistance positioned at 1.0801, followed by subsequent resistances at 1.1037 and 1.1195. For those with a bearish outlook, immediate support lies at 1.0407, with further supports anchored at 1.0252 and the crucial 1.0013 level.

Diving into the technical indicators, the Relative Strength Index (RSI) for EUR/USD stands at 39. This value, being below the midpoint of 50, showcases a bearish sentiment. However, it's worth noting that values nearing 30 are indicative of potentially oversold market conditions, which might hint at a reversal or consolidation soon. As for the MACD, the value stands at 0.00013 compared to its signal line at 0.00764. This close proximity suggests a potential crossover, which traders typically use to gauge momentum shifts.

Further supporting the analysis, the price of the EUR/USD is juxtaposed against the 50-Day Exponential Moving Average (EMA), currently positioned at 1.0534. The current price stance relative to this EMA can provide insights into the short-term trend. Moreover, our chart analysis reveals a downward channel with resistance extending at $1.0550.

The 50 EMA, suggesting selling opportunities, aligns closely at 1.0542. These combined elements suggest a bearish undertone in the market.

In conclusion, the EUR/USD's prevailing trend looks bearish, especially if the pair continues to navigate below the 1.0540 mark.

Should it breach this pivotal level, the dynamics could shift in favor of the bulls. As for the short-term trajectory, depending on its behavior near the 1.0540 pivot, the EUR/USD could either challenge the immediate resistance at 1.0801 or find solace near the 1.0407 support in the upcoming trading sessions.

Related News