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
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
EUR/USD breaks below 1.1000 on stellar NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created far more jobs than initially estimated in September, dragging EUR/USD to the area of new lows near 1.0950.
GBP/USD breaches 1.3100 after encouraging US Payrolls
The continuation of the uptrend in the US Dollar motivates GBP/USD to accelerates its losses and breaches 1.3100 the figure in the wake of the release of US NFP.
Gold rebounds from daily lows and flirts with $2,670
Following a post-NFP dip to the $2,640 region, Gold prices now embarks on an acceptable rebound and retest the area of $2,670 per ounce troy despite the marked advance in the US Dollar and rising US yields across the board.
US Payrolls surge in September, as 50bp rate cut ruled out
US payrolls data surprised on the upside in September, rising by 254k, smashing expectations of a 150k rise. The unemployment rate fell to 4.1% from 4.2%, average hourly earnings increased to a 4% YoY rate and there was a 72k upwards revision to the previous two months’ payrolls numbers.
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.