EUR/USD Price Forecast: Corrective advance likely to attract more sellers
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADEEUR/USD Current price: 1.0897
- The poor performance of Asian and European indexes help the US Dollar.
- ECB President Christine Lagarde is due to speak during US trading hours.
- EUR/USD retains its bearish tone, a near-term upward correction possible.
The EUR/USD pair kept grinding south early on Wednesday, falling during European trading hours to 1.0874, its lowest since August 2. The poor performance of equities undermines the market’s mood while providing a near-term boost to the US Dollar (USD). Weaker-than-anticipated earnings in Europe are the main reason behind stocks’ decline, although Asian indexes also fell, as concerns about an escalation in the Middle East conflict undermined the mood.
The USD also found support in comments from former President Donald Trump. The Republican candidate defended proposals to dramatically raise tariffs on foreign imports in an interview with Bloomberg, claiming tariffs is “the most beautiful word in the dictionary.”
Meanwhile, the macroeconomic calendar remained light throughout the European morning and had little to offer during American trading hours. The European Central Bank (ECB) President Christine Lagarde is due to speak at the Bank of Slovenia. As for the United States (US), the country published MBA Mortgage, which fell by 17% in the week ended October 11, and the Export Price Index and the Import Price Index for September, which fell by 0.7% and 0.4%, respectively, on a monthly basis.
EUR/USD short-term technical outlook
Technically, EUR/USD is bearish, albeit a corrective advance is not out of the table. In the daily chart, the pair is trading below a flat 100 Simple Moving Average (SMA) while a firmly bearish 20 SMA keeps extending its decline above the longer one. A directionless 200 SMA provided intraday support, converging with the aforementioned low at 1.0874. Finally, the Momentum indicator keeps heading south near oversold readings, while the Relative Strength Index (RSI) indicator bounced just marginally from around its 30 level, hinting at a potential upward correction but falling short of confirming it.
The near-term picture also suggests a corrective advance is possible. The 4-hour chart shows technical indicators turned higher but remain within negative levels and with limited upward strength. At the same time, moving averages maintain their sharp bearish slopes above the current level, with the 20 SMA providing dynamic resistance at around 1.0910. Overall, the risk remains skewed to the downside, with the 1.0800 mark in sight in the upcoming sessions.
Support levels: 1.0875 1.0840 1.0805
Resistance levels: 1.0910 1.0945 1.0990
EUR/USD Current price: 1.0897
- The poor performance of Asian and European indexes help the US Dollar.
- ECB President Christine Lagarde is due to speak during US trading hours.
- EUR/USD retains its bearish tone, a near-term upward correction possible.
The EUR/USD pair kept grinding south early on Wednesday, falling during European trading hours to 1.0874, its lowest since August 2. The poor performance of equities undermines the market’s mood while providing a near-term boost to the US Dollar (USD). Weaker-than-anticipated earnings in Europe are the main reason behind stocks’ decline, although Asian indexes also fell, as concerns about an escalation in the Middle East conflict undermined the mood.
The USD also found support in comments from former President Donald Trump. The Republican candidate defended proposals to dramatically raise tariffs on foreign imports in an interview with Bloomberg, claiming tariffs is “the most beautiful word in the dictionary.”
Meanwhile, the macroeconomic calendar remained light throughout the European morning and had little to offer during American trading hours. The European Central Bank (ECB) President Christine Lagarde is due to speak at the Bank of Slovenia. As for the United States (US), the country published MBA Mortgage, which fell by 17% in the week ended October 11, and the Export Price Index and the Import Price Index for September, which fell by 0.7% and 0.4%, respectively, on a monthly basis.
EUR/USD short-term technical outlook
Technically, EUR/USD is bearish, albeit a corrective advance is not out of the table. In the daily chart, the pair is trading below a flat 100 Simple Moving Average (SMA) while a firmly bearish 20 SMA keeps extending its decline above the longer one. A directionless 200 SMA provided intraday support, converging with the aforementioned low at 1.0874. Finally, the Momentum indicator keeps heading south near oversold readings, while the Relative Strength Index (RSI) indicator bounced just marginally from around its 30 level, hinting at a potential upward correction but falling short of confirming it.
The near-term picture also suggests a corrective advance is possible. The 4-hour chart shows technical indicators turned higher but remain within negative levels and with limited upward strength. At the same time, moving averages maintain their sharp bearish slopes above the current level, with the 20 SMA providing dynamic resistance at around 1.0910. Overall, the risk remains skewed to the downside, with the 1.0800 mark in sight in the upcoming sessions.
Support levels: 1.0875 1.0840 1.0805
Resistance levels: 1.0910 1.0945 1.0990
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.