EUR/USD Price Analysis – Oct 21, 2024
Daily Price Outlook
During the European trading session, the EUR/USD pair is struggling to maintain its gains from the previous week and turned bearish on Monday, trading around the 1.0857 level and reaching an intra-day low of 1.0846. However, this downward trend is likely to continue, driven by the expectation that the US dollar will strengthen as modest rate cuts by the Federal Reserve (Fed) support higher US Treasury yields.
Moreover, the declines in the pair will likely accelerate as investors anticipate further interest rate easing by the European Central Bank (ECB). Market participants will closely monitor the upcoming two-day speech by ECB President Christine Lagarde, starting Tuesday.
Bearish Outlook for EUR/USD Amid ECB Rate Cut Expectations
As we mentioned above, the EUR/USD pair could face further selling pressure as investors think the European Central Bank (ECB) will cut interest rates again. The Eurozone’s economic growth is slowing, and inflation is below the ECB’s target of 2%. Many believe the bank will lower borrowing rates in December. Meanwhile, Estonian central bank Governor Madis Müller mentioned that weak economic growth could lead to lower inflation. The ECB’s recent survey also lowered next year's inflation forecast to 1.9%, down from 2%.
Moreover, Gediminas Šimkus, a member of the ECB Governing Council, shared a cautious view on interest rates. He said that if disinflation continues, rates might go below what’s considered normal. Investors will be paying close attention to ECB President Christine Lagarde’s two-day speech starting Tuesday. After the recent 25 basis point rate cut, Lagarde didn’t provide a clear plan for future rates, saying that decisions will depend on new economic data.
Therefore, the expectation of further interest rate cuts by the ECB, combined with slowing economic growth and lower inflation forecasts, is likely to weaken the EUR/USD pair.
US Dollar Strengthens Amid Rate Cut Expectations and Upcoming Elections
On the US front, the US dollar maintained its upward trend and recently reached an 11-week high near 104.00. Traders are feeling positive about the dollar's future, believing the Federal Reserve (Fed) will slowly lower interest rates. Data from the CME FedWatch tool shows that the market expects the Fed to cut rates by a total of 50 basis points this year, with 25 basis points likely in both November and December.
Meanwhile, the expectations for a slower rate-cutting approach from the Fed have grown after strong US economic data for September. Investors will be looking closely at the preliminary S&P Global Purchasing Managers’ Index (PMI) data for October, set to be released on Thursday.
Moreover, the US dollar could see some ups and downs as the presidential elections get closer. Recent polls indicate that Democratic candidate and current Vice President Kamala Harris is ahead of Republican nominee and former President Donald Trump.
EUR/USD – Technical Analysis
EUR/USD is currently trading around $1.0861, reflecting a slight downward trend of 0.04%.
On the 2-hour chart, EUR/USD faces a key resistance level around $1.0869, corresponding to the 50-period Exponential Moving Average (EMA), which continues to act as a barrier for upward momentum. Recent trading sessions indicate a slight recovery attempt in EUR/USD, bouncing off from its immediate support at $1.0835. However, price action remains constrained below a descending trendline, suggesting ongoing selling pressure.
The Relative Strength Index (RSI) at 45.13 reflects neutral conditions, with slight bearish momentum. This signals potential room for further decline if selling pressure persists. Any failure to clear the immediate resistance could lead to renewed downward movement.
If EUR/USD breaks below $1.0868, it would face the next support level at $1.0813, followed by a critical base at $1.0794. On the upside, clearing the immediate resistance would open the door to $1.0894, followed by another key hurdle at $1.0916.
Conclusion:
If EUR/USD fails to surpass the $1.0869 resistance level, traders may consider selling below $1.0868, targeting $1.0813 as the next key support. However, a stop-loss should be placed above $1.0894 to manage risk.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD faces resistance at $1.0869, indicating potential downward pressure in the near term.
- Key support at $1.0835 suggests cautious buying interest around this level.
- RSI at 45.13 indicates neutral momentum, with potential downside if resistance holds firm.
EUR/USD is currently trading around $1.0861, reflecting a slight downward trend of 0.04%.
On the 2-hour chart, EUR/USD faces a key resistance level around $1.0869, corresponding to the 50-period Exponential Moving Average (EMA), which continues to act as a barrier for upward momentum. Recent trading sessions indicate a slight recovery attempt in EUR/USD, bouncing off from its immediate support at $1.0835. However, price action remains constrained below a descending trendline, suggesting ongoing selling pressure.
The Relative Strength Index (RSI) at 45.13 reflects neutral conditions, with slight bearish momentum. This signals potential room for further decline if selling pressure persists. Any failure to clear the immediate resistance could lead to renewed downward movement.
If EUR/USD breaks below $1.0868, it would face the next support level at $1.0813, followed by a critical base at $1.0794. On the upside, clearing the immediate resistance would open the door to $1.0894, followed by another key hurdle at $1.0916.
Conclusion:
If EUR/USD fails to surpass the $1.0869 resistance level, traders may consider selling below $1.0868, targeting $1.0813 as the next key support. However, a stop-loss should be placed above $1.0894 to manage risk.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.08677
Take Profit – 1.08137
Stop Loss – 1.08942
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$540/ -$265
Profit & Loss Per Mini Lot = +$54/ -$26
EUR/USD Price Analysis – Oct 18, 2024
Daily Price Outlook
The EUR/USD currency pair managed to halt its downward trend and gained positive traction on Friday, recovering from a four-day losing streak to trade around the 1.0846 level, even reaching an intra-day high of 1.0849. The shared currency is working to maintain its footing as the recent rally in the US Dollar (USD) seems to have paused. The US Dollar Index (DXY), which measures the Greenback's value against six major currencies, is struggling to push above the immediate resistance level of 103.90.
However, the overall outlook for the EUR/USD remains bearish, with expectations of further interest rate cuts from the European Central Bank (ECB) likely to put additional selling pressure on the Euro (EUR). As market participants monitor these developments, the currency pair may continue to experience volatility in the days ahead.
US Dollar Weakens Amid Positive Economic Data and Political Uncertainty, Providing Opportunity for EUR/USD Recovery
On the US front, the broad-based US dollar is losing its traction, but its outlook remains strong after Thursday’s positive economic data showed the country’s resilience. Retail sales, a key indicator of consumer spending, increased by 0.4% in September, surpassing expectations. Meanwhile, initial jobless claims for the week ending October 11 fell to 241,000, lower than the anticipated 260,000, suggesting a stable job market.
In recent weeks, the US dollar has outperformed its major peers as traders have scaled back expectations for a larger-than-usual interest rate cut of 50 basis points by the Federal Reserve (Fed) in November. Strong economic data from September has eased fears of a slowdown, leading traders to anticipate more gradual rate cuts instead. The CME FedWatch tool indicates that traders are now pricing in two rate cuts of 25 basis points in November and December, potentially lowering interest rates to between 4.25% and 4.50% by the end of the year.
Looking ahead, investors are paying close attention to market expectations surrounding the upcoming US presidential elections. Currently, there is a tight race between Donald Trump and Kamala Harris, with Harris leading by 2.4 percentage points, according to FiveThirtyEight’s daily election poll tracker. This political landscape may influence market sentiment in the coming months.
EUR/USD Pair Faces Bearish Outlook Amid ECB Rate Cuts and Political Concerns
On the EUR front, the EUR/USD pair has seen a mild recovery on Friday after hitting a fresh 10-week low near 1.0800 on Thursday. Despite this slight rebound, the overall outlook for the currency pair remains bearish. The Euro (EUR) could face additional selling pressure as expectations grow for further interest rate cuts from the European Central Bank (ECB). Recently, the ECB cut its Deposit Facility Rate by 25 basis points to 3.25%, marking the second consecutive rate reduction and the third this year.
The ECB's recent actions reflect growing concerns about reviving economic growth, with officials expressing confidence that inflation is under control. In a press conference following the rate decision, ECB President Christine Lagarde did not provide clear guidance on potential interest rate moves in December. However, market participants are anticipating another 25-basis point cut at the last meeting of the year, which could further impact the Euro’s value.
EUR/USD – Technical Analysis
The EUR/USD pair is trading slightly higher today, up 0.11% at $1.08375. The market is hovering below the key pivot point at $1.0848, which serves as a critical level for short-term direction. Immediate resistance is seen at $1.0868, followed by higher resistance levels at $1.0892 and $1.0916. A break above these levels could signal further bullish momentum for the euro against the dollar, with buyers targeting the next resistance zones.
On the downside, immediate support is at $1.0811, with further support levels at $1.0794 and $1.0779. A sustained move below these support areas could push EUR/USD into a deeper correction, where a more bearish outlook would prevail.
The 50-day Exponential Moving Average (EMA) at $1.0877 is acting as a resistance level, keeping the euro in check. Meanwhile, the Relative Strength Index (RSI) is currently at 39, indicating mildly oversold conditions but not yet signaling a significant reversal. Given this context, traders are likely watching for a potential breakdown below the pivot point to enter short positions.
A selling opportunity arises below $1.08488, with a take-profit target set at $1.07941. A stop loss should be placed at $1.08766 to manage risk, as a break above the 50-day EMA would invalidate the bearish setup.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot point at $1.0848 remains critical for determining the next direction.
- The 50-day EMA at $1.0877 acts as a strong resistance level.
- RSI at 39 suggests mildly oversold conditions, but further downside remains possible.
The EUR/USD pair is trading slightly higher today, up 0.11% at $1.08375. The market is hovering below the key pivot point at $1.0848, which serves as a critical level for short-term direction. Immediate resistance is seen at $1.0868, followed by higher resistance levels at $1.0892 and $1.0916. A break above these levels could signal further bullish momentum for the euro against the dollar, with buyers targeting the next resistance zones.
On the downside, immediate support is at $1.0811, with further support levels at $1.0794 and $1.0779. A sustained move below these support areas could push EUR/USD into a deeper correction, where a more bearish outlook would prevail.
The 50-day Exponential Moving Average (EMA) at $1.0877 is acting as a resistance level, keeping the euro in check. Meanwhile, the Relative Strength Index (RSI) is currently at 39, indicating mildly oversold conditions but not yet signaling a significant reversal. Given this context, traders are likely watching for a potential breakdown below the pivot point to enter short positions.
A selling opportunity arises below $1.08488, with a take-profit target set at $1.07941. A stop loss should be placed at $1.08766 to manage risk, as a break above the 50-day EMA would invalidate the bearish setup.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.08488
Take Profit – 1.07941
Stop Loss – 1.08766
Risk to Reward – 1: 1.9
Profit & Loss Per Standard Lot = +$547/ -$278
Profit & Loss Per Mini Lot = +$54/ -$27
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD remains under pressure, trading below the pivot point of $1.0892, with potential for further declines.
- RSI at 35 signals approaching oversold territory, but still room for additional downside.
- The 50-period EMA at $1.0917 reinforces bearish sentiment, with the pair struggling to break higher.
EUR/USD is trading at $1.08798, down 0.09%, as the pair remains under mild bearish pressure. The price has dropped below the pivot point of $1.0892, indicating a continued downtrend.
Immediate resistance is seen at $1.0916, with further resistance levels at $1.0933 and $1.0952. On the downside, key support is located at $1.0866, followed by $1.0852 and $1.0837. If the pair breaks below these levels, further downside movement could follow.
The Relative Strength Index (RSI) is currently at 35, suggesting that while the pair is approaching oversold territory, there is still room for additional downward movement.
The 50-period Exponential Moving Average (EMA) at $1.0917 is acting as a dynamic resistance, reinforcing the bearish bias as long as the price stays below this level.
The overall trend appears bearish, with a potential for further declines if key support levels are breached.
Traders may consider entering short positions below $1.08922, with a target of $1.08570, and a stop loss at $1.09160 to protect against any upside reversal. The combination of the bearish trend and a low RSI suggests the possibility of continued weakness in the near term.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.08922
Take Profit – 1.08570
Stop Loss – 1.09160
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$352/ -$238
Profit & Loss Per Mini Lot = +$35/ -$23
EUR/USD Price Analysis – Oct 16, 2024
Daily Price Outlook
During the European trading session on Wednesday, the EUR/USD currency pair continued its downward trend, falling to around 1.0880. The Euro (EUR) is struggling amid growing expectations that the European Central Bank (ECB) will lower interest rates again on Thursday. This outlook has put significant pressure on the major currency pair.
At the same time, the US dollar has been on a strong upswing over the past few weeks, contributing to the Euro's decline. The US Dollar Index, which measures the Greenback against six major currencies, climbed to approximately 103.40. Traders are increasingly confident that the US Federal Reserve (Fed) will gradually reduce interest rates for the rest of the year, further bolstering the Dollar's strength.
EUR/USD Declines as ECB Rate Cut Expectations and Economic Concerns Weigh on the Euro
On the EUR front, the EUR/USD currency pair has dropped due to expectations that the European Central Bank (ECB) will cut interest rates again on Thursday. Analysts predict the ECB will lower its Rate on Deposit Facility by 25 basis points to 3.25%, marking the second consecutive rate cut. Investors are closely watching the monetary policy statement and ECB President Christine Lagarde’s press conference for insights into the future of interest rates.
Lagarde is likely to take a dovish stance, as inflation pressures in the Eurozone seem to be easing, while concerns about an economic slowdown are growing. Preliminary data shows that the Eurozone's Harmonized Index of Consumer Prices (HICP) fell to 1.8% in September.
Moreover, recent estimates for the Consumer Price Index (CPI) in France and Italy indicate lower-than-expected inflation. Compounding these concerns, speculation about former US President Donald Trump potentially winning the upcoming US presidential elections has raised worries about the EU’s export outlook. If Trump wins, tariffs on automotive imports to the US could increase, negatively impacting exports from Europe and further slowing economic growth.
Therefore, the anticipated rate cut by the ECB and easing inflation pressures are likely to weaken the Euro further, contributing to the EUR/USD pair's decline. In the meantime, concerns over potential tariffs from a Trump presidency could negatively affect EU exports, exacerbating Euro weakness.
US Dollar Strengthens as Fed Signals Gradual Rate Cuts and Retail Sales Data Looms
On the US front, the EUR/USD pair is facing pressure due to the strong performance of the US Dollar in recent weeks. The US Dollar Index (DXY), which measures the Greenback against six major currencies, has risen to nearly 103.40. The Dollar is gaining strength as traders expect the US Federal Reserve (Fed) to gradually lower interest rates for the rest of the year.
Analysts believe the Fed will shift from an "aggressive" to a "moderate" policy-easing approach, especially after strong Nonfarm Payrolls (NFP) data and the US Services Purchasing Managers Index (PMI) showed growth, along with rising price pressures in September.
However, Fed Governor Christopher Waller has warned against rushing into interest rate cuts. In a recent speech, he mentioned that while he anticipates gradual rate reductions over the next year, the labor market remains healthy even as demand for workers is slowing.
Looking ahead, the next important indicator for the US Dollar will be the Retail Sales data for September, set to be released on Thursday. Economists predict a 0.3% increase in Retail Sales after a modest rise of 0.1% in August, which could further influence the Dollar's trajectory.
EUR/USD – Technical Analysis
EUR/USD is trading at $1.08798, down 0.09%, as the pair remains under mild bearish pressure. The price has dropped below the pivot point of $1.0892, indicating a continued downtrend.
Immediate resistance is seen at $1.0916, with further resistance levels at $1.0933 and $1.0952. On the downside, key support is located at $1.0866, followed by $1.0852 and $1.0837. If the pair breaks below these levels, further downside movement could follow.
The Relative Strength Index (RSI) is currently at 35, suggesting that while the pair is approaching oversold territory, there is still room for additional downward movement.
The 50-period Exponential Moving Average (EMA) at $1.0917 is acting as a dynamic resistance, reinforcing the bearish bias as long as the price stays below this level.
The overall trend appears bearish, with a potential for further declines if key support levels are breached.
Traders may consider entering short positions below $1.08922, with a target of $1.08570, and a stop loss at $1.09160 to protect against any upside reversal. The combination of the bearish trend and a low RSI suggests the possibility of continued weakness in the near term.
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EUR/USD Price Analysis – Oct 14, 2024
Daily Price Outlook
The EUR/USD pair has extended its decline, hovering around 1.0920 in the early Asian session on Monday. This downward trend is largely fueled by rising risk aversion amid escalating geopolitical tensions in the Middle East and the ongoing conflicts between China and Taiwan, putting selling pressure on the Euro (EUR), which is considered a riskier currency.
Meanwhile, the Euro is feeling the heat from the European Central Bank (ECB), which is expected to cut interest rates further in its remaining monetary policy meetings this year. The ECB's dovish outlook is being reinforced by a faster-than-anticipated drop in Eurozone inflation and a 'fragile' economic recovery.
As these factors combine, the Euro faces significant headwinds, reflecting broader concerns in the global market and highlighting the interconnectedness of geopolitical events and economic policy decisions.
EUR/USD Under Pressure Amid Geopolitical Tensions and Rate Cut Expectations
As we mentioned, the EUR/USD pair has been under pressure, recently declining to around 1.0920 in the early Asian session on Monday. This drop is primarily due to rising risk aversion amid escalating geopolitical tensions in the Middle East and conflicts between China and Taiwan, which are weighing on the Euro (EUR), a riskier currency.
However, the spokesperson from the U.S. Department of State expressed serious concerns about the People's Liberation Army (PLA) military drills in the Taiwan Strait, indicating that the U.S. will closely monitor China's activities and coordinate with allies. Any further escalation in these tensions could lead to increased demand for safe-haven assets like the U.S. dollar (Greenback), putting additional pressure on the EUR/USD pair.
Traders are also anticipating a 25 basis point (bps) rate cut from the Federal Reserve (Fed) in November, following the release of the U.S. Producer Price Index (PPI) on Friday. The CME FedWatch Tool indicates that the market is now pricing in an 86.8% chance of this rate cut, up from 83.3% before the PPI data was released.
This shift in expectations further contributes to the bearish sentiment surrounding the Euro, as the prospect of lower interest rates in the U.S. tends to support the dollar against other currencies.
Euro Faces Pressure Amid ECB Rate Cut Expectations
Moreover, the Euro is experiencing pressure as the European Central Bank (ECB) is expected to cut interest rates further in its upcoming monetary policy meetings this year. This anticipated move stems from a recent and faster-than-expected drop in inflation across the Eurozone, which has raised concerns about the region's economic health.
The ECB's dovish stance is strengthened by a quicker-than-expected decline in inflation within the Eurozone and signs of a weak economic recovery. As inflation drops, the ECB is likely to lower rates to support growth, which could further weaken the Euro against other currencies. Overall, these factors contribute to a bearish outlook for the Euro, as traders respond to the changing economic landscape in Europe.
EUR/USD - Technical Analysis
The EUR/USD pair is trading at $1.09268, down 0.08% as it flirts with its immediate pivot point of $1.09220. The euro faces resistance at $1.09389, and a break above this level could trigger further bullish momentum toward the next resistance levels of $1.09522 and $1.09673.
On the downside, immediate support is found at $1.09135, with further support at $1.08997 and $1.08868, which will likely serve as key zones to watch if bearish pressure intensifies.
Technically, the 50-day Exponential Moving Average (EMA) at $1.09480 is providing strong resistance and could be a critical point in determining whether the pair moves higher or faces rejection. A failure to break above the 50-day EMA might suggest that further downside is likely in the near term.
The Relative Strength Index (RSI) is currently sitting at 44, indicating neutral momentum. This suggests that the pair has room to move in either direction, depending on upcoming market developments.
Traders may look to buy above $1.09221, with a take-profit target of $1.09492, aligning with resistance zones. A stop-loss at $1.09070 will help limit downside risk if EUR/USD slips below its immediate support level.
In conclusion, while EUR/USD remains in a neutral position, any break above or below the pivot point at $1.09220 will dictate its short-term direction. The pair’s ability to hold above or breach the 50-day EMA will be pivotal in determining its next move.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD faces strong resistance at $1.09480, the 50-day EMA level.
- RSI at 44 suggests neutral momentum with room for further movement.
- Key support at $1.09135 may lead to bearish pressure if broken.
The EUR/USD pair is trading at $1.09268, down 0.08% as it flirts with its immediate pivot point of $1.09220. The euro faces resistance at $1.09389, and a break above this level could trigger further bullish momentum toward the next resistance levels of $1.09522 and $1.09673.
On the downside, immediate support is found at $1.09135, with further support at $1.08997 and $1.08868, which will likely serve as key zones to watch if bearish pressure intensifies.
Technically, the 50-day Exponential Moving Average (EMA) at $1.09480 is providing strong resistance and could be a critical point in determining whether the pair moves higher or faces rejection. A failure to break above the 50-day EMA might suggest that further downside is likely in the near term.
The Relative Strength Index (RSI) is currently sitting at 44, indicating neutral momentum. This suggests that the pair has room to move in either direction, depending on upcoming market developments.
Traders may look to buy above $1.09221, with a take-profit target of $1.09492, aligning with resistance zones. A stop-loss at $1.09070 will help limit downside risk if EUR/USD slips below its immediate support level.
In conclusion, while EUR/USD remains in a neutral position, any break above or below the pivot point at $1.09220 will dictate its short-term direction. The pair’s ability to hold above or breach the 50-day EMA will be pivotal in determining its next move.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.09221
Take Profit – 1.09492
Stop Loss – 1.09070
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$271/ -$151
Profit & Loss Per Mini Lot = +$27/ -$15
EUR/USD Price Analysis – Oct 11, 2024
Daily Price Outlook
The EUR/USD pair maintained its upward trend, trading strongly around the 1.0950 level and reaching an intra-day high of 1.0955. This upward movement can be attributed to a bearish US dollar, which declined following disappointing economic data from the United States.
Initial jobless claims rose to 258,000, exceeding expectations and prompting speculation that the Federal Reserve may need to reconsider its rate cut plans.
This economic weakness puts downward pressure on the US dollar and supports gains in the EUR/USD pair. Despite expectations that the European Central Bank (ECB) may implement further interest rate cuts in its remaining monetary policy meetings this year, the euro continues to outperform.
Euro Resilience Amid ECB Rate Cut Expectations and Economic Concerns
On the EUR front, the euro is performing well, even as market participants anticipate that the European Central Bank (ECB) will cut interest rates further in its remaining meetings this year.
The ECB has already lowered its Deposit Facility Rate by 50 basis points (bps) to 3.5% this year and is expected to reduce it by another 50 bps.
Traders predict two rate cuts of 25 bps each, with one likely coming next week and another in December. Despite these anticipated cuts, the euro continues to show strength against the US dollar.
However, the dovish sentiment surrounding the ECB has increased due to a quicker-than-expected drop in inflation and concerns about economic growth.
ECB policymaker Yannis Stournaras recently stated that price pressures are easing faster than the ECB had predicted in September and supported two more rate cuts in the remaining meetings this year, with further reductions likely in 2025.
Moreover, revised estimates for Germany’s Harmonized Index of Consumer Prices (HICP) for September showed inflation at 1.8%, below the ECB’s target of 2%.
On the economic front, growth prospects in the Eurozone appear vulnerable, particularly as Germany is projected to end the year with a 0.2% decline in output.
Therefore, the anticipated ECB rate cuts may initially weaken the euro, but ongoing inflation declines and economic concerns in the Eurozone support the euro's strength against the US dollar.
This dynamic contributes to the EUR/USD pair's upward momentum despite rate cut expectations.
EUR/USD - Technical Analysis
The EUR/USD is trading at $1.09337, down 0.02% for the day, as the pair struggles to break through key resistance levels. The currency pair remains below its pivot point at $1.0942, suggesting that bearish momentum is still in play.
Immediate resistance is observed at $1.0955, followed by the 50-day Exponential Moving Average (EMA) at $1.0957, which has been capping the upside for the past week.
A clear break above $1.0955 could pave the way for EUR/USD to target the next resistance levels at $1.0967 and $1.0981.
On the downside, immediate support is seen at $1.0926, with further support levels at $1.0914 and $1.0900. A drop below $1.0926 could trigger additional selling pressure, pushing the pair toward the psychological $1.0900 mark.
The Relative Strength Index (RSI) is currently at 44, indicating neutral momentum and leaving room for further downside if the pair fails to reclaim $1.0942.
Given the current technical setup, a sustained move below $1.0942 may signal a bearish trend continuation, targeting lower support levels. Conversely, a breakout above the 50-day EMA at $1.0957 would shift the outlook to bullish, potentially driving the EUR/USD higher.
Overall, the EUR/USD outlook remains cautiously bearish below the pivot point of $1.0942, and traders should watch for a confirmed break above or below key levels to determine the pair’s next directional move.
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EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Immediate resistance at $1.0955, with further hurdles at $1.0967 and $1.0981.
- Support Levels: Key support at $1.0926, followed by $1.0914 and $1.0900.
- RSI at 44: Indicates neutral momentum, with potential for additional downside if resistance levels hold firm.
The EUR/USD is trading at $1.09337, down 0.02% for the day, as the pair struggles to break through key resistance levels. The currency pair remains below its pivot point at $1.0942, suggesting that bearish momentum is still in play.
Immediate resistance is observed at $1.0955, followed by the 50-day Exponential Moving Average (EMA) at $1.0957, which has been capping the upside for the past week. A clear break above $1.0955 could pave the way for EUR/USD to target the next resistance levels at $1.0967 and $1.0981.
On the downside, immediate support is seen at $1.0926, with further support levels at $1.0914 and $1.0900. A drop below $1.0926 could trigger additional selling pressure, pushing the pair toward the psychological $1.0900 mark. The Relative Strength Index (RSI) is currently at 44, indicating neutral momentum and leaving room for further downside if the pair fails to reclaim $1.0942.
Given the current technical setup, a sustained move below $1.0942 may signal a bearish trend continuation, targeting lower support levels. Conversely, a breakout above the 50-day EMA at $1.0957 would shift the outlook to bullish, potentially driving the EUR/USD higher.
Overall, the EUR/USD outlook remains cautiously bearish below the pivot point of $1.0942, and traders should watch for a confirmed break above or below key levels to determine the pair’s next directional move.
EUR/USD - Trade Ideas
Entry Price – Sell Below 1.09424
Take Profit – 1.09130
Stop Loss – 1.09583
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$294/ -$159
Profit & Loss Per Mini Lot = +$29/ -$15