Daily Price Outlook

The EUR/USD pair has successfully breached the 1.0955 mark, sealing the daily candlestick beneath it, thus strengthening the anticipation of an extended bearish trajectory in the intraday context, with a subsequent objective set at 1.0880.

The persistent influence of the double top formation is anticipated to exert additional downward pressure, potentially leading the pair to exceed the previously mentioned target, setting its sights on 1.0785 as the subsequent bearish milestone.

Given the adverse momentum steered by the EMA50, a continued bearish sentiment is forecasted in ensuing sessions. It's pivotal to note that for this bearish momentum to persist, the pair should remain below 1.1030.

Today's trading spectrum is delineated with a support at 1.0840 and resistance positioned at 1.1000.

A bullish sentiment will prevail above 1.09249, whereas a stance below this figure leans towards bearishness.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09228

Take Profit – 1.09679

Stop Loss – 1.08965

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$451/ -$263

Profit & Loss Per Micro Lot = +$45/ -$26

Daily Price Outlook

Despite the recent positive news from Italy, the EUR/USD currency pair failed to stop its bearish momentum and has dropped to 1.0925 level, the lowest level in a week. However, the reason for the its decline could be linked to the stronger US dollar, which gained strength due to risk-off market sentiment. The broad-based US dollar climbed to a five-week high as a stronger-than-expected U.S. inflation reading stoking concerns that the Federal Reserve might persist in its series of interest rate hikes.

Factors Affecting EUR/USD: Italian Tax Announcement, Debt Concerns, and Global Tensions

It is worth noting that Italian Prime Minister Giorgia Meloni's announcement of a one-time 40% tax on banks has reassured that there will not be further financial difficulties for the banking sector. This strategic move has been widely regarded as one of the key factors that helps the EUR/USD pair to limit its deeper losses. On the other side, worries about debt issues in China's market and potential recession struggles in the Eurozone are putting pressure on the EUR/USD value.

Furthermore, the mixed readings from Germany's Wholesale Price Index (WPI) for July have played a major role in undermining the EUR/USD pair. Besides this, issues like China's Country Garden suspending bond trading and delayed payments from a subsidiary of Zhongzhi Enterprise Group are deepening China's debt problems. Meanwhile, the global context of Russia's missile-equipped submarines and the ongoing US-China trade tensions is promoting a risk-averse sentiment, further dampening the EUR/USD currency pair price.

EUR/USD Outlook Amid ECB Hints and Risk-Off Sentiment

Moreover, European Central Bank (ECB) officials have hinted at potential changes in their policies during recent public appearances. The ECB's monthly economic outlook underlines macro uncertainties, giving Euro bears some optimism. As a result, S&P 500 and Euro Stoxx Futures show slight declines, while US 10-year Treasury bond yields hover around 4.17%.

EUR/USD - Technical analysis

The EUR/USD pair has successfully breached the 1.0955 mark, sealing the daily candlestick beneath it, thus strengthening the anticipation of an extended bearish trajectory in the intraday context, with a subsequent objective set at 1.0880.

The persistent influence of the double top formation is anticipated to exert additional downward pressure, potentially leading the pair to exceed the previously mentioned target, setting its sights on 1.0785 as the subsequent bearish milestone.

Given the adverse momentum steered by the EMA50, a continued bearish sentiment is forecasted in ensuing sessions. It's pivotal to note that for this bearish momentum to persist, the pair should remain below 1.1030.

Today's trading spectrum is delineated with a support at 1.0840 and resistance positioned at 1.1000.

A bullish sentiment will prevail above 1.09249, whereas a stance below this figure leans towards bearishness.

Daily Price Outlook

The EUR/USD pair is exhibiting notable upward momentum as it tests the pivotal resistance level at 1.1030. This prompts a cautious approach in the upcoming trading sessions, emphasizing the importance of the price remaining below this level to sustain the current bearish trend. The associated targets within this bearish trajectory lie at 1.0955 and extend further to 1.0880, contingent on the successful breach of the aforementioned resistance level.

Conversely, it's crucial to acknowledge that a breach of 1.1030, followed by a sustained position above it, would halt the negative scenario and potentially reignite an attempt to reestablish the primary bullish trend. In terms of today's expected market dynamics, the projected trading range spans from the support level of 1.0900 to the resistance level of 1.1030.

Overall, the prevailing trend for today is anticipated to be bearish.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09614

Take Profit – 1.10350

Stop Loss – 1.09087

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$736/ -$527

Profit & Loss Per Micro Lot = +$73/ -$52

Daily Price Outlook

The EUR/USD currency pair continues to extend its upward rally, maintaining its position above the 1.1000 mark as we head into Friday. This pair has now exhibited positive trading performance for a consecutive three-day period. However, the reason behind this upward momentum can be attributed to a variety of factors such as the weakening of the US dollar and significant data releases from Europe.

Looking ahead, a number of traders are adopting a cautious approach, opting to observe market developments rather than actively engage. This catious feeling is strong because the upcoming US Producer Price Index (PPI) report is expected to be released later in the American trading session. However, the outcome of this report is anticipated and is anticipated to have a meaningful impact on market dynamics, thereby influencing the trading strategies of many market participants.

ECB Report and Inflation Uncertainty: Potential Impact on EUR/USD Pair

The European Central Bank's (ECB) recent report highlighted that inflation in the Eurozone is expected to remain high for an extended period, and the outlook for economic growth and inflation is uncertain. A Reuters poll suggests that the 2.0% inflation target might not be achieved until 2025, with over 90% of surveyed economists not expecting any interest rate cuts before the second quarter of 2024.

This news could weigh on the EUR/USD pair, as high inflation and economic uncertainty might impact the euro's strength.

US Economic Data's Dual Impact on EUR/USD Pair

According to the latest data, the Consumer Price Index (CPI) in the US experienced a year-on-year increase of 3.2% in comparison to June's 3%, which was just slightly below the anticipated 3.3%. In the meantime, the Core CPI showed a slight decrease, moving from 4.8% to 4.7%. Furthermore, there was an unexpected rise in Initial Jobless Claims, reaching 248,000, surpassing the earlier forecast of 230,000.

Therefore, the impact of this news on the EUR/USD pair could be two sided. The stronger-than-expected CPI and Core CPI figures may bolster the US Dollar, driven by possible expectations of stricter monetary policy and increased investor attraction. On the other side, the surge in Initial Jobless Claims could indicate economic difficulties, potentially offsetting the Dollar's strength. As a result, the EUR/USD pair could experience a mix of influences, potentially leading to increased volatility or a complex trading pattern.

EUR/USD - Technical analysis

The EUR/USD pair is exhibiting notable upward momentum as it tests the pivotal resistance level at 1.1030. This prompts a cautious approach in the upcoming trading sessions, emphasizing the importance of the price remaining below this level to sustain the current bearish trend. The associated targets within this bearish trajectory lie at 1.0955 and extend further to 1.0880, contingent on the successful breach of the aforementioned resistance level.

Conversely, it's crucial to acknowledge that a breach of 1.1030, followed by a sustained position above it, would halt the negative scenario and potentially reignite an attempt to reestablish the primary bullish trend. In terms of today's expected market dynamics, the projected trading range spans from the support level of 1.0900 to the resistance level of 1.1030.

Overall, the prevailing trend for today is anticipated to be bearish.

Daily Price Outlook

The EUR/USD pair has maintained a sideways and narrow trajectory since yesterday. It's worth noting that the EMA50 indicator continues to exert downward pressure on the price, thus sustaining the bearish trend scenario. The confirmation of this scenario hinges on the breach of the 1.0955 level, which would validate the extension of the bearish movement toward the 1.0880 level.

The presence of a double top pattern's negative influence enhances the likelihood of further anticipated declines in the forthcoming sessions. It's crucial to emphasize that the continuity of the bearish trend necessitates staying below the 1.1030 level.

For today, the projected trading range spans from the support level of 1.0900 to the resistance level of 1.1030.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09770

Take Profit – 1.10380

Stop Loss – 1.09237

Risk to Reward – 1: 2.1

Profit & Loss Per Standard Lot = +$610/ -$533

Profit & Loss Per Micro Lot = +$61/ -$53

Daily Price Outlook

The EUR/USD currency pair is showing strong optimism as the Euro (EUR) continues its upward journey against the US Dollar. Thanks to encouraging US inflation numbers, the pair reached exciting new heights around 1.1065. This persistent positive sentiment, coupled with a growing appetite for risk, is playing a role in the Greenback's decline, which was seen as a key factor that kept the EUR/USD currency pair higher.

Driving Factors Behind EUR/USD Upward Momentum

However, the reason for its upward surge can be linked to recent progress in key economic indicators. The German Harmonized Index of Consumer Price (HICP) stood at 6.5%, in line with market expectations. Similarly, Eurozone Sentix Investor Confidence improved, rising from -22.5 in July to -18.9 in August, surpassing the expected -23.4.

It is worth noting, the European Central Bank is set to release the Economic Bulletin, a report that might offer insights into their monetary outlook for the year. These elements together shape the direction of the EUR/USD currency pair.

US Dollar's Trajectory and Inflation Influence on EUR/USD

Looking at the other side of things, the movements of the US dollar lately are influenced by what officials from the Federal Reserve (Fed) are talking about. It looks like they're moving away from raising interest rates and leaning more towards keeping them steady. For example, Philly Fed's Patrick Harker mentioned not changing rates, and Atlanta Fed's Raphael Bostic believes there's no need for more rate hikes.

But what really matters for people who invest is the US inflation numbers. If inflation stays low, the US dollar might become weaker, which could give a slight boost to the EUR/USD pair. In general, most investors think the Fed will keep the rates where they are now, while the European Central Bank (ECB) is working out how to tighten things up after the summer.

Influential US CPI and PPI Data Impact on EUR/USD

Looking ahead, our attention shifts to the upcoming US Consumer Price Index (CPI) report scheduled for Thursday. This data is really important because it helps the Federal Reserve (Fed) decide what to do with interest rates, which also affects the direction of EUR/USD. Predictions say that US inflation might go up a bit from 3% to 3.3%, and the core rate is expected to stay around 4.8%. These numbers are super important for investors, and they could guide how the EUR/USD currency pair moves based on what the Fed does and how people feel in the market.

EUR/USD - Technical Analysis

The EUR/USD pair has maintained a sideways and narrow trajectory since yesterday. It's worth noting that the EMA50 indicator continues to exert downward pressure on the price, thus sustaining the bearish trend scenario. The confirmation of this scenario hinges on the breach of the 1.0955 level, which would validate the extension of the bearish movement toward the 1.0880 level.

The presence of a double top pattern's negative influence enhances the likelihood of further anticipated declines in the forthcoming sessions. It's crucial to emphasize that the continuity of the bearish trend necessitates staying below the 1.1030 level.

For today, the projected trading range spans from the support level of 1.0900 to the resistance level of 1.1030.

Daily Price Outlook

The EUR/USD pair made an effort to surpass the 1.0955 threshold but has commenced the day on a bullish note, influenced by the Stochastic indicator's positive outlook. Some interim gains are anticipated before the pair potentially resumes its downtrend.

The persistent downward pressure exerted by the EMA50 underscores the prevailing bearish correction trend, a sentiment further reinforced by the recently observed double top pattern on the chart.

In light of the current analysis, the bearish trajectory is projected to continue in the near term, with a key target pinpointed at 1.0880. It's imperative to note, however, that any breach above the 1.1030 level could negate this bearish forecast, redirecting the pair towards its primary bullish trajectory.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09445

Take Profit – 1.10403

Stop Loss – 1.08992

Risk to Reward – 1: 2.1

Profit & Loss Per Standard Lot = +$958/ -$453

Profit & Loss Per Micro Lot = +$95/ -$45

Daily Price Outlook

The EUR/USD pair is maintaining its upward trajectory above the 1.0942 level, with a neutral intraday bias at present. The persistence of resistance at 1.1148 suggests the potential for further decline. A support level is found at 1.0832 in case the pair drops below 1.0942.

EUR/USD Market Analysis: The Euro displays a recovery pattern within an adjacent triangle below 1.1000 amid concerns over Italy's tax policy.

During the early hours of Wednesday's European session, EUR/USD has managed to recover some of its weekly losses. Consequently, the currency pair finds itself within a symmetrical triangle formation that has persisted for two months. This uptick in sentiment can be attributed to positive news and data releases from China, contributing to a slight improvement in overall market sentiment.

The recent surge in market performance is bolstered by an increase in factory-gate inflation figures from China, offsetting concerns arising from a rise in consumer prices. Furthermore, Bloomberg's reference to the Biden Administration's optimistic news has provided a source of comfort for EUR/USD traders. According to the report, the US plans to specifically target Chinese companies that derive more than 50% of their revenue from industries like quantum computing and artificial intelligence (AI).

It's worth noting that unexpected tax implications for banks' windfall profits in Italy, coupled with global credit rating agencies downgrading US financial institutions, are influencing risk perception and consequently affecting the EUR/USD price. Apprehensions related to potential economic downturns in the UK and China's decelerating economic growth seem to resonate on a similar wavelength, adding complexity to the market outlook.

EUR/USD - Technical Analysis

The EUR/USD pair made an effort to surpass the 1.0955 threshold but has commenced the day on a bullish note, influenced by the Stochastic indicator's positive outlook. Some interim gains are anticipated before the pair potentially resumes its downtrend.

The persistent downward pressure exerted by the EMA50 underscores the prevailing bearish correction trend, a sentiment further reinforced by the recently observed double top pattern on the chart.

In light of the current analysis, the bearish trajectory is projected to continue in the near term, with a key target pinpointed at 1.0880. It's imperative to note, however, that any breach above the 1.1030 level could negate this bearish forecast, redirecting the pair towards its primary bullish trajectory.

Daily Price Outlook

The EUR/USD currency pair has been facing challenges as it struggles to rise above the 1.1000 level on Tuesday. Investors are worried about a possible recession in the area, which is putting pressure on the pair. However, the decline in EUR/USD currency pair was driven by a recent survey indicating that consumer inflation expectations for the upcoming 12 months dropped to 3.4% in June. Moreover, the strong US dollar was seen as another important factor that weakened the EUR/USD currency pair.

EUR/USD Pair Affected by Mixed Eurozone News and ECB Rate Speculation

According to the latest data, the Eurozone Sentix Investor Confidence showed a slight improvement, moving from -22.5 in July to -18.9 in August. This result was better than what experts had predicted at -23.4. However, it's important not to get too carried away with this positive change. Patrick Hussy from Sentix pointed out that the Eurozone economy is still stuck in a recession. This means we shouldn't think everything is great just because there was a small improvement.

Moreover, Germany's Industrial Production numbers for June dropped by -1.5% compared to expectations of -0.4%. This raised concern and impacted the EUR/USD pair's performance.

Eurozone's Inflation Worries Impact EUR/USD Pair

According to the European Central Bank's survey, people in the Eurozone were still worried about inflation in June. They thought prices would go up by 3.4% in the next year, which is lower than the 3.9% they predicted in May. Looking three years ahead, they expected inflation to be 2.3%, down from 2.5% in May. People also believed that their income wouldn't change much, but they expected to spend less. The outlook for economic growth in the next year got a little better, and expected unemployment in a year remained the same. As a result, the EUR/USD pair dropped to 1.0970, marking a 0.25% decrease.

US Dollar's Focus and Upcoming Economic Indicators for EUR/USD Direction

On the US front, people are paying attention to the US dollar because a Federal Reserve member, Michelle Bowman, said that increasing interest rates could help control inflation. This could make the US dollar stronger and limit gains in the EUR/USD pair.

Furthermore, people will be watching Germany's Consumer Price Index for July on Tuesday, and then the US Consumer Price Index on Thursday. These events will affect the US dollar and show where the EUR/USD pair might go.

EUR/USD - Technical Analysis

The EUR/USD pair exhibited marginal upward shifts during the preceding evening, scrutinizing the resistance posed by the EMA50. As we initiate the current trading day, a revitalized bearish sentiment has manifested, characterized by a trajectory aimed at revisiting the 1.0955 level.

This tactical move is congruent with the ongoing preservation of the bearish trend scenario, which persists as a consequence of the observed completion of a double top pattern. This specific pattern instigated a deviation from the previously observed bullish trajectory, subsequently initiating a bearish correction with its ensuing target positioned at 1.0880.

Consequently, we anticipate the continuation of negative market dynamics in the forthcoming trading sessions. However, it is prudent to acknowledge that a breach of the 1.1030 level would serve to mitigate the prevailing downward pressure, potentially redirecting the price towards the primary bullish trend.

The anticipated trading range for the present day is projected to fluctuate within the boundaries of support at 1.0900 and resistance at 1.1040.

Daily Price Outlook

The EUR/USD pair exhibited marginal upward shifts during the preceding evening, scrutinizing the resistance posed by the EMA50. As we initiate the current trading day, a revitalized bearish sentiment has manifested, characterized by a trajectory aimed at revisiting the 1.0955 level.

This tactical move is congruent with the ongoing preservation of the bearish trend scenario, which persists as a consequence of the observed completion of a double top pattern. This specific pattern instigated a deviation from the previously observed bullish trajectory, subsequently initiating a bearish correction with its ensuing target positioned at 1.0880.

Consequently, we anticipate the continuation of negative market dynamics in the forthcoming trading sessions. However, it is prudent to acknowledge that a breach of the 1.1030 level would serve to mitigate the prevailing downward pressure, potentially redirecting the price towards the primary bullish trend.

The anticipated trading range for the present day is projected to fluctuate within the boundaries of support at 1.0900 and resistance at 1.1040.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09791

Take Profit – 1.10993

Stop Loss – 1.09063

Risk to Reward – 1: 1.65

Profit & Loss Per Standard Lot = +$1202/ -$728

Profit & Loss Per Micro Lot = +$120/ -$72