EUR/USD Price Analysis – Oct 30, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair maintained its upward trend, remaining well bid around 1.0832 and reaching an intra-day high of 1.0859.
This bullish rally can be attributed to positive Eurozone growth data, which indicated that the economy surprisingly grew in the third quarter after contracting in the April-June period.
Moreover, gains in the EUR/USD pair accelerated as the bullish rally in the US dollar appeared to have slowed and faced bearish pressure following weak JOLTS Job Openings data for September.
EUR/USD Rises on Positive Eurozone GDP Data and Lower Rate Cut Expectations
On the EUR front, the shared currency gained strong bullish traction, with the EUR/USD rising strongly near the 1.0850 level. This surge is mainly due to positive Gross Domestic Product (GDP) data showing that the Eurozone economy grew unexpectedly in the third quarter after contracting earlier in the year.
In the meantime, the German economy expanded by 0.2%, surprising economists who had predicted a 0.1% decline. However, the Eurozone overall grew by 0.4% in the three months ending in September, following a 0.2% growth in the previous quarter.
Meanwhile, the bloc's GDP rose at an annual rate of 0.9% in Q3, compared to 0.6% in Q2 and the expected 0.8%. Year-on-year, German GDP contracted at a slower rate of 0.3% after flat growth in Q2. Additionally, the preliminary Harmonized Index of Consumer Prices (HICP) data for Germany showed higher-than-expected inflation.
These positive developments have reduced expectations for a significant interest rate cut by the European Central Bank (ECB) in December, with the likelihood of a 50 basis point cut now dropping to 22% from 45%. However, concerns about the Eurozone's economic outlook remain among investors.
EUR/USD Boosted by Bearish US Dollar and Weak Job Data
Another factor that has been boosting the EUR/USD pair is the bearish US dollar, which has lost its momentum following weak JOLTS Job Openings data for September, raising concerns about the labor market.
The data revealed that job openings dropped to 7.443 million, below the expected 7.99 million and down from the previous 7.861 million. This decline in job openings suggests a slowdown in labor demand and supports expectations that the Federal Reserve may keep interest rates low for the rest of the year.
Moving on, investors are looking ahead to key reports like the ADP Employment Change and the flash US Q3 GDP data, which will be released during the North American session.
Economists predict the private sector added 115,000 new jobs in October, down from 143,000 in September. Furthermore, the US economy is expected to grow at a steady annualized rate of 3.0%.
EUR/USD – Technical Analysis
The EUR/USD pair is trading just below the pivot point of $1.08223, marking a cautious stance as it edges lower in today’s session. Immediate resistance is noted at $1.08382, with further resistance levels at $1.08568 and $1.08738.
The 50-period Exponential Moving Average (EMA) at $1.08101 aligns closely with the current price, suggesting a tentative neutral bias. The Relative Strength Index (RSI) sits at 52, indicating balanced momentum without strong overbought or oversold signals.
Should the pair sustain a drop below $1.08223, it may attract further selling interest, potentially pushing it toward immediate support at $1.07986. A break beneath this level could open doors to additional downside toward $1.07858 and $1.07686.
Traders may consider short positions below $1.08223, targeting $1.07864, while setting a stop loss around $1.08414 to guard against unexpected volatility. Watch for price action near the pivot for early indications of market direction.
EUR/USD trades near its pivot, with potential for further downside if support levels are broken.
Related News
- GOLD Price Analysis – Oct 30, 2024
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.