EUR/USD Current price: 1.0498
- ECB President Christine Lagarde and Fed Chairman Jerome Powell to hit the wires.
- The United States releases the November ADP report on Employment Change.
- EUR/USD aims to extend its slump towards the 1.0400 threshold en route to the year’s low.
The EUR/USD pair struggles around the 1.0500 mark on Wednesday as the US Dollar (USD) regained its strength, partially backed by risk aversion. Political turmoil in France and South Korea took its toll on financial markets, with most Asian and European indexes reflecting the dismal mood by trading in the red.
Meanwhile, the Hamburg Commercial Bank (HCOB) released the final versions of the November Services and Composite Purchasing Manager Indexes (PMIs) for European economies. German figures suffered downward revisions, but the better readings in other economies resulted in upward revisions in the Eurozone Indexes. The EU Composite PMI was confirmed at 48.3 in November, slightly better than the 48.1 previously calculated.
Additionally, the EU published the October Producer Price Index (PPI), which was up by 0.4% on a monthly basis as expected. The annual reading printed at -3.2%, above the -3.3% expected and the previous -3.4%. Finally, European Central Bank (ECB) President Christine Lagarde will testify before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels. Comments about future monetary policy decisions can hit the Euro.
Across the pond, the United States (US) published MBA Mortgage Applications for the week ended November 29, which rose by 2.8%, below the previous weekly increase of 6.3%.
Coming up next, the US will release the ADP report on private employment change, while later in the day, Federal Reserve (Fed) Chairman Jerome Powell will be delivering a speech, and market participants will pay close attention to his words and any clues he may provide on upcoming monetary policy decisions.
EUR/USD short-term technical outlook
The EUR/USD pair posts modest intraday losses, still trading within familiar levels. The daily chart shows that the technical risk skews to the downside, as the pair keeps trading below all its moving averages, with the 20 Simple Moving Average (SMA) maintaining its bearish slope and providing dynamic resistance at around 1.0560. Technical indicators, in the meantime, remain within negative levels without clear directional strength.
In the near-term, and according to the 4-hour chart, EUR/USD is poised to extend its slump. The pair trades below bearish moving averages, meeting sellers around the 20 SMA. The 100 and 200 SMAs, in the meantime, accelerated south above the larger one. Finally, technical indicators are neutral-to-bearish below their midlines, favoring a downward extension without confirming it.
Support levels: 1.0465 1.0420 1.0370
Resistance levels: 1.0560 1.0625 1.0660
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: Extra consolidation appears on the cards
AUD/USD set aside a two-day recovery past the 0.6300 hurdle and came under pressure on Wednesday, always in response to US tariff fears and the marked bounce in the Greenback.
EUR/USD: Further downside could retest the 200-day SMA
EUR/USD accelerated its losses and retested lows near the 1.0740 zone on the back of the stronger US Dollar and persistent jitters surrounding potential tariffs on EU imports as soon as next week.
Gold remains slightly offered just above $3,000
Gold is trading in a narrow range on Wednesday but continues to hold firm just above the $3,000 mark. The precious metal is drawing support from upbeat sentiment in the broader commodities space, buoyed by Copper’s surge to a fresh all-time high earlier in the day.
Crypto Today: SHIB, DOGE and PEPE enter $6B gains as BTC aims at $90k
Cryptocurrency market capitalization dips 1.3% to hit $2.9 trillion on Tuesday, with market indicators showing capital rotation toward memecoins.
Sticky UK services inflation shows signs of tax hike impact
There are tentative signs that the forthcoming rise in employer National Insurance is having an impact on service sector inflation, which came in a tad higher than expected in February. It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.