Daily Price Outlook

The EUR/USD currency pair concluded the previous day's trading session above the 1.0880 level, and as the new day commences, it carries forward an additional bullish inclination. This momentum has prompted a test of the EMA50, which forms a minor resistance point at 1.0915. This development indicates a potential for achieving projected gains within the intraday scope, with an initial target set at 1.0955. It's worth noting that surpassing this level could serve as a catalyst for the price to progress toward the next positive station at 1.1030.

Given the current trajectory, a continued bullish bias is anticipated for the present trading session. It is essential to highlight that any breach of the 1.0880 level would potentially curtail the projected upward movement, causing the price to revert to a correctional bearish phase. The projected trading range for the day is expected to fall between the support level at 1.0850 and the resistance level at 1.1000.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09046

Take Profit – 1.09330

Stop Loss – 1.08884

Risk to Reward – 1: 1.75

Profit & Loss Per Standard Lot = +$284/ -$162

Profit & Loss Per Micro Lot = +$28/ -$16

Daily Price Outlook

The EUR/USD currency pair starts the week with a slight rise, hovering around 1.0880, indicating that the Euro is gaining a little strength against the US Dollar. Although, traders and investors are seems cautious to place any strong bid as they are anticipating the release of the German Producer Price Index (PPI). This PPI data is important because it provides insights into economic trends.

Investors are excited and anxious to see how the PPI results will impact the EUR/USD currency pair, as it could push the pair's movement in different directions, prompting market participants to closely watch on the outcome.

Eurozone Economic Indicators and Central Bank Dynamics

According to the latest reports, the Eurozone's economy grew by 0.3% in the second quarter of this year, which was in line with expectations. On a yearly basis, the growth was 0.6%. Meanwhile, the good news also came from the manufacturing sector, as industrial production increased by 0.5% in June, beating predictions. This helps ease concerns about rising prices, as July's inflation rate was 5.3%, a bit lower than before.

Hence, the Eurozone's positive economic indicators, including GDP and industrial production, along with lower inflation, could weaken the Euro against the US Dollar due to reduced pressure on the European Central Bank to raise interest rates. This potential interest rate difference may impact the EUR/USD pair, making the Euro less attractive compared to the dollar.

Focus on Federal Reserve's Actions and Market Response

Across the ocean, market sentiment is experiencing shifts influenced by the Federal Reserve and its monetary policy. Despite a mix of robust labor data and softer inflation figures, investors are increasingly betting on the possibility of additional rate hikes. However, the upcoming speech by Federal Reserve Chairman Jerome Powell holds the potential to be a game-changer for market sentiment.

As traders look to the future, the spotlight turns to the Fed's policy trajectory. Powell's speech is expected to provide crucial insights into the Fed's stance on the economy, inflation, and the potential need for further interest rate adjustments. This event has the power to significantly impact market volatility and steer the direction of the EUR/USD pair.

EUR/USD - Technical analysis

The EUR/USD pair is exhibiting fluctuations near the 1.0880 level, while also making attempts to consolidate below it. Notably, the stochastic indicator is experiencing a decline in its positive momentum, approaching the overbought zones. Meanwhile, the EMA50 is exerting downward pressure on the price.

As a result, we hold the view that the likelihood of a resumption in the anticipated bearish trend remains valid for the upcoming period. The subsequent significant target lies at 1.0785. It's worth considering that a breach of the 1.0880 level could initiate recovery efforts, aiming for testing the 1.0955 mark before a clear trend direction becomes evident.

The trading range expected for today spans between the support at 1.0790 and the resistance at 1.0950.

Daily Price Outlook

The EUR/USD pair is exhibiting fluctuations near the 1.0880 level, while also making attempts to consolidate below it. Notably, the stochastic indicator is experiencing a decline in its positive momentum, approaching the overbought zones. Meanwhile, the EMA50 is exerting downward pressure on the price.

As a result, we hold the view that the likelihood of a resumption in the anticipated bearish trend remains valid for the upcoming period. The subsequent significant target lies at 1.0785. It's worth considering that a breach of the 1.0880 level could initiate recovery efforts, aiming for testing the 1.0955 mark before a clear trend direction becomes evident.

The trading range expected for today spans between the support at 1.0790 and the resistance at 1.0950.

EUR/USD - Trade Idea

Entry Price – Sell Below 1.08811

Take Profit – 1.08460

Stop Loss – 1.08992

Risk to Reward – 1: 1.9

Profit & Loss Per Standard Lot = +$351/ -$181

Profit & Loss Per Micro Lot = +$35/ -$18

Daily Price Outlook

The EUR/USD pair is currently hovering around the 1.0880 mark, and its recent closure beneath this level sustains the bearish outlook for the foreseeable future. The subsequent target is set at 1.0785.

The influence of the EMA50 remains bearish, exerting downward pressure on the price and reinforcing the projected downtrend. This assessment is further supported by the presence of a double top pattern on the chart. It's noteworthy that a solid consolidation above 1.0880 would negate the negative scenario and potentially initiate a recovery phase, with an initial target at the 1.0955 level.

For the current day, the expected trading range spans between the support at 1.0790 and the resistance at 1.0950.

EUR/USD - Trade Idea

Entry Price – Sell Below 1.08890

Take Profit – 1.08401

Stop Loss – 1.09247

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$489/ -$357

Profit & Loss Per Micro Lot = +$48/ -$35

Daily Price Outlook

The EUR/USD currency pair managed to halt its recent losses and started gaining momentum, hovering above the range of 1.0885 to 1.0890. It rose by 0.15% over the course of the day. However, the reason for its upward rally could be attributed to the slight decrease in the value of the US dollar. The broad-based US dollar is losing traction and remains sluggish for the second successive day in the wake of retreating US Treasury bond yields and cautious stance ahead of the upcoming Jackson Hole Symposium. This turned out to be a key factor lending some support to the EUR/USD pair.

In contrast to this, the Federal Reserve's more hawkish stance on interest rates might prevent a significant decline in the USD and limit the gains for the EUR/USD pair. Looking forward, traders are focusing on a speech scheduled by the European Central Bank's (ECB) Lane, as well as the final Euro Zone Consumer Price Index (CPI) figures. These events are expected to provide additional momentum and direction for the currency pair.

US Dollar Trends, Fed Expectations, and Economic Conditions

The broad-based US Dollar has been under pressure for two consecutive days due to lower US Treasury bond returns. This has given some support to the EUR/USD pair, indicating the Euro's relative improvement against the Dollar. However, there's a growing belief that the US Federal Reserve will maintain higher interest rates for an extended period.

This sentiment had driven the yield on the primary 10-year US government bond to its highest point in ten months on Thursday. Although US consumer prices saw a moderate rise in July, the struggle to achieve the Fed's 2% target and concerns about global economic conditions persist.

Market Focus and Expectations for EUR/USD

Furthermore, there is talk that the European Central Bank (ECB) could pause its streak of raising interest rates nine times in a row by September. This could prevent the EUR/USD pair from rising much more. So, it's wise to wait for clear signs of strong buying before thinking the recent drop over the last month is over and expecting more gains.

Meanwhile, the final Euro Zone CPI numbers and Lane's speech could change how the Euro does against the Dollar. On the other side, there's no important economic info coming from the US on Friday, so the Dollar will be affected by how US bond yields change.

EUR/USD - Technical analysis

The EUR/USD pair is currently hovering around the 1.0880 mark, and its recent closure beneath this level sustains the bearish outlook for the foreseeable future. The subsequent target is set at 1.0785.

The influence of the EMA50 remains bearish, exerting downward pressure on the price and reinforcing the projected downtrend. This assessment is further supported by the presence of a double top pattern on the chart. It's noteworthy that a solid consolidation above 1.0880 would negate the negative scenario and potentially initiate a recovery phase, with an initial target at the 1.0955 level.

For the current day, the expected trading range spans between the support at 1.0790 and the resistance at 1.0950.

Daily Price Outlook

Despite the upbeat Eurozone data, the EUR/USD currency pair failed to stop its past five-day losing streak and remained well offered around the 1.0863 level. This marked a 0.14% decline for the day. The Euro's struggle to gain traction came despite positive economic indicators in the Eurozone, likely due to lingering uncertainty about future economic growth and inflation.

Meanwhile, the US dollar continued to show strength, exerting downward pressure on the EUR/USD pair. Hence, the combination of upbeat US data and the potential for further tightening measures from the Federal Reserve remains the driving force behind the strength of the US Dollar.

Positive Eurozone Data Fails to Lift Euro Amid Growth and Inflation

According to the latest updates, Eurozone's second-quarter Gross Domestic Product (GDP) matched expectations, showing a 0.3% growth and 0.6% increase YoY. Good news also came from June's Industrial Production, which improved by 0.5% compared to an expected -0.1%. This positive trend continued as Industrial Output rose by 0.5%, defying the predicted 0.1% drop.

Earlier this week, the Eurozone ZEW Survey for August indicated better economic sentiment at -5.5, surpassing the estimated -12 and the previous -12.2. Germany's ZEW Survey for August also improved to -12.3, beating expectations. Despite these positive signals, the Euro struggled against other currencies due to lingering doubts about economic growth and inflation.

US Dollar Gains Momentum Amid Positive Data and Fed Tightening Speculations

Furthermore, the US Dollar's strength is mainly being driven by positive data and the potential for the Federal Reserve (Fed) to tighten its policies further. Notably, US Industrial Production saw a 1.0% increase in July, beating the expected 0.3% rise and the previous 0.8% drop. Building Permits also went up to 1.44 million, and Housing Starts jumped to 1.45 million from June's 1.39 million, surpassing the projected 1.48 million.

These better-than-expected figures contributed to the USD's strength. Moreover, the recent Federal Open Market Committee (FOMC) Minutes highlighted concerns about persistently high inflation. Fed officials recognized notable inflation risks and discussed potential additional monetary policy tightening to bring inflation in line with targets. In light of these developments, the Euro struggled against the US Dollar, creating a challenge for the EUR/USD pair.

EUR/USD - Technical analysis

In a comprehensive assessment of gold's market trajectory, the precious metal has demonstrated a pronounced downturn, successfully reaching our initial anticipated benchmark at $1892.00. Currently, gold is exerting pressure on this level, aiming to validate its break beneath it. This augments the likelihood of persisting in a bearish trend, with potential descent aiming towards the subsequent target of $1873.50.

In light of these dynamics, our outlook remains bearish for the foreseeable horizon, underscored by the downward impetus provided by the 50-Day Exponential Moving Average (EMA50). It is paramount to observe that any breach of the $1905.00 level, succeeded by the $1913.15 benchmark, would arrest the anticipated decline, potentially pivoting the metal's trajectory towards an ascent.

For the day's trading landscape, we project gold's valuation to oscillate between a support threshold of $1875.00 and a resistance cap of $1905.00.

Daily Price Outlook

The EUR/USD currency pair has decisively surpassed the 1.0880 benchmark, culminating in a daily candlestick closure beneath this threshold. This development reinforces the projection of an extended bearish trajectory in the forthcoming phase, setting the stage for an eventual descent towards our subsequent objective situated at 1.0785.

The 50-Day Exponential Moving Average (EMA50) consistently underpins this envisaged downward momentum. It's noteworthy that this sentiment has been influenced by the recently culminated double bottom formation. It's pivotal for investors to recognize that any potential breach of the 1.0880 level could instigate the pair to embark on recovery endeavors, initially aiming for the 1.0955 zones, prior to making another downturn effort.

For today, the anticipated trading bracket is delineated between the support level of 1.0780 and the resistance at 1.0935.

EUR/USD - Trade Idea

Entry Price – Sell Below 1.08783

Take Profit – 1.08370

Stop Loss – 1.09134

Risk to Reward – 1: 1.1

Profit & Loss Per Standard Lot = +$413/ -$351

Profit & Loss Per Micro Lot = +$41/ -$35

Daily Price Outlook

The EUR/USD currency pair has managed to sustain its upward momentum, hovering around the 1.0934 level. However, the resurgence in this pair can be attributed to the release of upbeat Eurozone data, shedding light on the improved performance of the European economy. This positive economic outlook has acted as a catalyst, bolstering the Euro (EUR) and subsequently contributing to the overall strength of the EUR/USD currency pair.

Conversely, the bullish US dollar played a major role in putting a cap on the EUR/USD currency pair's further gains. The US dollar's bullish performance was fueled by the impressive retail sales figures. These numbers showed strong consumer spending, which in turn provides a substantial lift to the entire economy. This upbeat economic scenario has given rise to expectations of potential interest rate hikes by the Federal Reserve. As a result, investors are finding the dollar more attractive, potentially leading to even greater strength in its value.

Eurozone Industrial Production Rebounds, Minimal Impact on EUR/USD Pair

According to the latest official data, Eurozone Industrial Production was pleasantly surprised by showing an unexpected increase in June, signifying a revival in the manufacturing sector's progress. The monthly growth of 0.5% surpassed forecasts of a -0.1% contraction, while the annual dip of 1.2% in June was notably smaller compared to May's 2.5% decline, outperforming the anticipated 4.2% drop. These statistics had a mild effect on the EUR/USD pair, which is presently trading around 1.0930, displaying a 0.22% increase for the day.

Eurozone's Steady Growth and Positive Employment Change Bolster EUR/USD Confidence

Furthermore, the Eurozone's economy grew 0.3% in Q2 2023, meeting estimates and maintaining the same pace as Q1. The annual GDP rate was 0.6% for both quarters, in line with predictions. Meanwhile, Employment Change data for Q2 revealed a 0.2% increase quarterly and a 1.5% rise yearly.

Thus, the consistent 0.6% annual GDP rate in both quarters, along with the positive Employment Change data, reinforces confidence. This news has supported EUR/USD, which is trading at 1.0928, showing a 0.21% increase for the day.

EUR/USD - Technical analysis

The EUR/USD pair exhibited a bearish rebound upon encountering the initial significant resistance at 1.0955, signaling an intent to continue its corrective downward trajectory. A breach of the 1.0880 mark is crucial to pave the way for our subsequent target at 1.0785.

Given these dynamics, the prevailing outlook remains bearish for the forthcoming period, further reinforced by the negative momentum implied by the EMA50.

It's noteworthy that surpassing the 1.0955 level, followed by the 1.1030 threshold, would nullify the anticipated decline, steering the pair back toward a primary bullish trend.

Today, we foresee a trading spectrum with a floor at 1.0820 and a ceiling at 1.0970.  

Daily Price Outlook

The EUR/USD pair exhibited a bearish rebound upon encountering the initial significant resistance at 1.0955, signaling an intent to continue its corrective downward trajectory. A breach of the 1.0880 mark is crucial to pave the way for our subsequent target at 1.0785.

Given these dynamics, the prevailing outlook remains bearish for the forthcoming period, further reinforced by the negative momentum implied by the EMA50.

It's noteworthy that surpassing the 1.0955 level, followed by the 1.1030 threshold, would nullify the anticipated decline, steering the pair back toward a primary bullish trend.

Today, we foresee a trading spectrum with a floor at 1.0820 and a ceiling at 1.0970.  

EUR/USD - Trade Idea

Entry Price – Sell Below 1.09313

Take Profit – 1.08499

Stop Loss – 1.09766

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$814/ -$453

Profit & Loss Per Micro Lot = +$81/ -$45

Daily Price Outlook

The EUR/USD pair is currently hovering around the 1.0900 mark. It's noteworthy that the stochastic indicator is displaying a diminishing bullish momentum, which could potentially prompt the pair to continue its downward trajectory, breaking below the 1.0880 threshold and aiming for the subsequent target of 1.0785.

Given the backdrop of the recently formed double top pattern, coupled with the bearish influence exerted by the EMA50, we anticipate a continued bearish outlook. It's pivotal to highlight that maintaining levels below 1.1030 is crucial for the continuation of this predicted bearish momentum.

For today, the trading spectrum is projected between a support level of 1.0830 and a resistance level of 1.0980.

EUR/USD - Trade Idea

Entry Price – Sell Below 1.09416

Take Profit – 1.08914

Stop Loss – 1.09683

Risk to Reward – 1: 1.88

Profit & Loss Per Standard Lot = +$502/ -$267

Profit & Loss Per Micro Lot = +$50/ -$26