EUR/USD Current Price: 1.0572

  • Upbeat German data fell short of supporting the EUR as the sentiment worsens.
  • United States Treasury yields advance ahead of first-tier events scheduled for Thursday.
  • EUR/USD gains downward traction and points for a slide towards 1.0500.

The EUR/USD pair extended its slide on Wednesday, bottoming during London trading hours at 1.0565. Financial markets turned cautious after mixed earnings reports from big tech names and ahead of first-tier events on Thursday. Nevertheless, most global indexes trade in the green, limiting US Dollar gains.

The Euro came under selling pressure despite upbeat German data. The October IFO report showed the Business Climate improved to 86.9, beating expectations of 85.9. The assessment of the current situation also improved, to 89.2 from the previous 88.7, while Expectations increased to 84.7. The United States (US) macroeconomic calendar has nothing relevant to offer. The country published MBA Mortgage Applications, which declined 1% in the week ended October 20. Later in the session, the US will release September New Home Sales, while the Bank of Canada (BoC) will announce its monetary policy decision, introducing some noise in financial markets.

Meanwhile, US Treasury yields ticked higher ahead of critical events. Investors await the European Central Bank (ECB) monetary policy decision on Thursday, which will be announced alongside the US Gross Domestic  Product (GDP). The preliminary estimate of the Q3 GDP is foreseen at 4.2%, much better than the previous 2.1%.

EUR/USD short-term technical outlook

From a technical point of view, the EUR/USD pair is at risk of extending its slide. In the daily chart, the pair is barely holding above a mildly bullish 20 Simple Moving Average (SMA), providing dynamic support at 1.0560. At the same time, technical indicators extended their slides, and the Momentum indicator is about to cross its 100 level into negative territory, while the Relative Strength Index (RSI) indicator stands at around 46, in line with increased bearish pressure.

In the near term, and according to the 4-hour chart, the risk skews to the downside. EUR/USD met sellers around a mildly bearish 200 SMA, while the 20 SMA has lost its bullish strength above the longer one. Finally, technical indicators head south with uneven strength but still supporting a downward extension in the upcoming session.

Support levels: 1.0560 1.0520 1.0480  

Resistance levels: 1.0640 1.0685 1.0720

View Live Chart for EUR/USD

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


Recommended Content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Majors

Cryptocurrencies

Signatures