EUR/USD
The euro fell to the lowest in 2 ½ months in early European trading on Thursday, holding firmly in red for the fourth straight day, a part of larger three-week downtrend.
Markets await the ECB’s policy decision, due later today, with wide expectations that the central bank will deliver the third rate cut this year.
The ECB is likely to cut interest rates by 25 basis points today (Deposit rate to move to 3.25% from 3.50%) as inflation is under control and the economy is stagnating, partially due to high borrowing cost.
Markets also expect the ECB to cut rates three more times until March 2025, though confirmation for such action is unlikely to be heard from President Lagarde and other policymakers, as they stick to their mantra that any policy decision will be based on economic data ahead of every meeting.
Bearish picture on daily chart (strong negative momentum / Wednesday’s close below 200DMA / 10/100 bear-cross) and weakening weekly studies (14-w momentum indicator is breaking into negative zone / 5/200WMA death cross) support bearish scenario.
Bears eye immediate targets at 1.0835 Fibo 61.8% of 1.0601/1.1214) and 1.0809/00 (weekly cloud base / psychological), ahead of 1.0775 (Aug 1 higher low) and 1.0745 (Fibo 76.4%).
Broken 200DMA reverted to initial resistance (1.0872), followed by falling daily Tenkan-sen (1.0922) and the base of thick daily Ichimoku cloud (1.0968) which should cap corrective upticks to keep larger bears in play.
Res: 1.0872; 1.0907; 1.0935; 1.0968.
Sup: 1.0825; 1.0800; 1.0775; 1.0745.
Interested in EUR/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stays cautious near 1.0850, as ECB rate decision looms
EUR/USD trades with caution near 1.0850 in the European session on Thursday. The pair struggles, despite a steady US Dollar and a positive shift in risk sentiment, as ECB rate cut bets remain a drag on the Euro. ECB policy announcements and President Lagarde's presser eyed.
GBP/USD retakes 1.3000 ahead of US Retail Sales data
GBP/USD is grinding higher to retest 1.3000 in the European session on Thursday. The pair benefits from a recovery in risk sentiment and a pause in the US Dollar advance. All eyes now remain on the US Retail Sales data for fresh trading directives.
Gold rises toward $2,700, sets new record-high
Gold price prolongs its one-week-old uptrend for the third straight day and trades at a new record-high above $2,680. Investors await the weekly Initial Jobless Claims and September Retail Sales data releases from the US.
European Central Bank set to trim interest rates again as economic outlook worsens
The European Central Bank is expected to cut benchmark interest rates by 25 bps at the October policy meeting. ECB President Christine Lagarde’s presser will be closely scrutinized for fresh policy cues.
Another unconvincing policy briefing fails to inspire confidence
Chinese authorities are playing the long game, trying to keep investors focused on the bigger picture, multiple stimulus measures spread out over time, with a bit of subtle bid support from state-backed institutions.
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.