- EUR/USD remains under selling pressure around 1.0467 amid the stronger USD.
- The major pair holds below the 50- and 100-hour EMAs with the bearish RSI.
- The key support level is seen at the 1.0400-1.0410 zone; the first resistance level is located at 1.0550.
The EUR/USD pair remains on the defensive above the mid 1.0400s during the early European trading hours on Wednesday. The major pair bounces off the year-to-date (YTD) low of 1.0448 and currently trades near 1.0467, up 0.01% on the day.
Market players await the Eurozone Producer Price Index (PPI) and Retail Sales for fresh impetus. Also, the European Central Bank (ECB) President Lagarde's speech on Wednesday will be in the spotlight. The annual Eurozone Retail Sales for August is expected to drop 1.2% from the previous reading of a 1% fall.
From the technical perspective, the EUR/USD pair holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the four-hour chart, which means the path of least resistance for the pair is to the downside. Furthermore, the Relative Strength Index (RSI) holds in bearish territory below 50, supporting the sellers for the time being.
That said, the key support level for the EUR/USD pair is seen at the 1.0400-1.0410 region, representing the lower limit of the Bollinger Band and a psychological round mark. The next contention to watch is near a low of September 25 at 1.0355. Further south, the next stop of the major pair is seen at 1.0320 (a low of November 29).
On the upside, the first resistance level for the major pair is located near the 50-hour EMA at 1.0550. The additional upside filter will emerge near the upper boundary of the Bollinger Band at 1.0609, followed by 1.0624 (the 100-hour EMA). Any follow-through buying above the latter will see a rally to 1.0670 (a high of September 22), followed by a psychological figure at 1.0700.
EUR/USD four-hour chart
-638319924254040613.png)
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 below 1.0400 as mood sours
EUR/USD loses its traction and retreats to the 1.0380 area in the second half of the day on Monday. The negative shift seen in risk mood, as reflected by Wall Street's bearish opening, supports the US Dollar and makes it difficult for the pair to hold its ground.
GBP/USD nears 1.2500 on renewed USD strength
GBP/USD turns south and drops toward 1.2500 after reaching a 10-day-high above 1.2600 earlier in the day. In the absence of high-tier macroeconomic data releases, the US Dollar benefits from the souring risk mood and weighs on the pair.
Gold falls below $2,600 amid mounting risk aversion
Gold fell below the $2,600 level in the American session on Monday, with US Dollar demand backed by the poor performance of global equities and exacerbated by thin trading conditions ahead of New Year's Eve.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
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.