- The US Dollar holds onto recent losses after US PPI and FOMC minutes.
- ECB minutes, US CPI, and Jobless Claims are due on Thursday.
- The EUR/USD pair holds steady, entering a consolidation phase in the short-term while testing a key resistance level.
The EUR/USD tested levels above 1.0630 but pulled back. The pair posted modest gains as it continues to rebound from monthly lows. The pair awaits more US inflation data while trading at a crucial area, with the US Dollar still weak as US yields continue to pull back and market sentiment remains positive.
The US Producer Price Index (PPI) rose unexpectedly in September, with the annual rate at 2.2% compared to the consensus of 1.6%. The number only boosted the Dollar moderately. Despite the hotter than expected reading, it didn't create market concerns. Later in the day, the FOMC minutes showed that some officials considered the tightening cycle done, while others suggested that they may have to raise rates one more time before year-end. The minutes reinforced the data-dependent mode of the Fed.
Thursday will be a busy day on the economic calendar. The European Central Bank (ECB) will release the minutes of its September meeting. In the US, the Consumer Price Index (CPI) for September will be a crucial report. The annual rate is expected to slow from 3.7% to 3.6%. If there is a significant upside surprise, the market will consider the possibility of more tightening for longer more seriously.
EUR/USD short-term technical outlook
-638326534554324258.png)
The EUR/USD is consolidating above the 20-day Simple Moving Average (SMA), but it is facing resistance at the crucial 1.0630 resistance area. The chart shows scope for more gains, with the Relative Strength Index (RSI) and Momentum moving higher. However, the overall trend remains downward.
On the 4-hour chart, the pair is testing the 1.0630 area, which contains a downtrend line, while also holding slightly above an uptrend line. Technical indicators provide no clear indication, with the RSI near 70, Momentum flattening, and the MACD showing no significant conviction. A strong breakthrough above 1.0635 should reinforce the outlook for the Euro, targeting 1.0670. On the flip side, the key short-term support stands at the 20-SMA at 1.0570, and below that, the next target is at 1.0555.
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
GBP/USD holds recovery gains above 1.2900 ahead of BoE policy decision
GBP/USD builds its recovery momentum above 1.2900 in European trading on Thursday, moving away from its lowest level since mid-August. Traders adjust their positions ahead of the key BoE and Fed monetary policy announcements.
EUR/USD stays firm near 1.0750 amid US Dollar pullback
EUR/USD holds higher ground near 1.0750 in the European session on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trunp win-inspired USD longs ahead of all-important Fed policy announcements.
Gold price faces challenges due to decline in safe-haven flows, awaits Fed rate decision
Gold price (XAU/USD) faced challenges as the dollar-denominated precious metals struggled due to a stronger US Dollar (USD) following the victory of former President Donald Trump in the US election.
BoE set for a second interest rate cut this year on Thursday
Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.