- EUR/USD marches firmly towards 0.9800 on broad US dollar weakness, following a hot US inflation report.
- EUR/USD’s failure to crack the 200-EMA in the hourly chart could send the pair diving towards 0.9700; otherwise, expect a test of 0.9900.
The EUR/USD rallied on Thursday, though it faced solid resistance around the 20-day EMA at 0.9788, and finished the session with gains of 0.76% after hitting a daily low of 0.9631. As the Asian Pacific session begins, the EUR/USD is trading at 0.9772, below its opening price, by a minimal 0.02%.
EUR/USD Price Forecast
The EUR/USD technical side depicts the major as downward biased. Since the end of February 2022, the EUR/USD dropped below the 20-day EMA, a dynamic resistance level that traders have been using. Even though the EUR/USD had spans trading above it, most of the time price stalled at the 20-day EMA and retraced to lower price levels. So failure to crack it could open the door for further losses. Therefore, the EUR/USD first support would be the October 13 low of 0.9631, followed by the 0.9600 figure, ahead of the YTD low at 0.9538.
Short term, the one-hour time frame depicts the EUR/USD bias as neutral. Of note, the major tested the 200-EMA during the day, but it could not surpass it. Hence, based on price action, the EUR/USD might consolidate around the 0.9774-0.9800 area, though failure to break the top of the range could pave the way for further losses.
Once the EUR/USD breaks 0.9800, key resistance levels lie at the R1 daily pivot at 0.9840, followed by the 0.9900 figure ahead of parity.
On the other hand, the EUR/USD first support would be the daily pivot point at 0.9740, followed by the confluence of the 50/100-EMAs around d0.9715/16, ahead of 0.9700.
Also read: EUR/USD makes a U-turn, climbing to daily highs nearby 0.9800 after hot US inflation
EUR/USD Key Technical Levels
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 drops to two-year lows below 1.0400 after weak PMI data
EUR/USD stays under bearish pressure and trades at its weakest level in nearly two years below 1.0400. The data from Germany and the Eurozone showed that the business activity in the private sector contracted in early November, weighing on the Euro.
GBP/USD falls to six-month lows below 1.2600, eyes on key data releases
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2600. This downside is attributed to the stronger US Dollar (USD) as traders continue to evaluate the Fed's policy outlook following latest data releases and Fedspeak.
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark
Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.
Ripple surges to a new yearly high; XRP bulls aim for three-year high of $1.96
Ripple extends its gains by around 10% on Friday, reaching a new year-to-date high of $1.43 and hitting levels not seen since mid-May 2021. The main reasons behind the rally are the announcement that the US SEC's Chair Gary Gensler will resign and the launch in Europe of an XRP ETP by asset management company WisdomTree.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.