EUR/USD Current price: 1.1195
- The positive tone of Wall Street leads the US Dollar lower against the Euro.
- Speculative interest prices in another Federal Reserve’s 50 bps cut in November.
- EUR/USD aims to conquer the 1.1200 threshold, but nothing is set and done yet.
The EUR/USD pair retreated from an intraday high of 1.1198 hit at the beginning of the day but holds nearby ahead of Wall Street’s opening. The US Dollar found some near-term demand early on Wednesday, advancing unevenly across the FX board. For a change, the Euro stands among the USD's most resilient rivals.
Financial markets rushed away from the USD on Tuesday, following discouraging United States (US) data that fueled speculation the Federal Reserve (Fed) will deliver another 50 basis points (bps) interest rate cut when it meets in November, vs post-Fed speculation for a 25 bps trim.
As a result, US indexes ended the day in the green, although it overseas rivals could not benefit from the positive momentum. Asian and European indexes trade mixed, not far from their opening levels. Nevertheless, US futures aim north, supporting another positive day and additional USD losses.
Data-wise, the macroeconomic calendar has little to offer. The European Central Bank (ECB) had a non-monetary policy meeting, usually a no-event. As for the US, the country released MBA Mortgage Applications for the week ended September 20, which were up by 11%. August New Home Sales will be released later in the day.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair is poised to extend its advance, albeit the battle around 1.1200 has not been defined yet. The pair is up for a second consecutive day and trading near the mentioned figure. In the daily chart, EUR/USD posted a higher high and a higher low, while the 20 Simple Moving Average (SMA) turned marginally higher in the 1.1090 price zone. At the same time, the 100 SMA aims firmly north above a mildly bullish 200 SMA, both far below the current level. Technical indicators, in the meantime, have turned flat within positive levels, lacking directional strength yet reflecting the absence of selling interest.
In the near term, and according to the 4-hour chart, the risk skews to the upside. EUR/USD remains well above bullish moving averages, while technical indicators picked up north within positive levels. The positive momentum is scarce, but still, there are no technical signs of a potential decline. Near-term support can be found at around 1.1170, where the pair bottomed twice in the last sessions.
Support levels: 1.1165 1.1120 1.1090
Resistance levels: 1.1200 1.1250 1.1290
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD corrects toward 0.6850, awaits US PCE Price Index
AUD/USD is falling back toward 0.6850 in Friday's Asian trading, reversing from near 19-month peak. A tepid US Dollar bounce drags the pair lower but the downside appears called by the latest Chinese stimulus measures, which boost risk sentiment ahead of US PCE data.
USD/JPY pares gains below 145.50 after Tokyo CPI inflation data
USD/JPY is paring back gains to trade below 145.50 in the Asian session on Friday, as Tokyo CPI inflation data keep hopes of BoJ rate hikes alive. However, intensifying risk flows on China's policy optimism support the pair's renewed upside. The focus shifts to the US PCE inflation data.
Gold price consolidates below record high as traders await US PCE Price Index
Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index.
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.