Daily Price Outlook

The EUR/USD currency pair managed to extned its upward rally and still showing positive momentum, hovering around 1.0610 level on Wednesday. However, the reason for its upward movement can be attributed to the weakening US Dollar, which was being pressured by the cautious comments from Federal Reserve officials, who are adopting a more dovish stance. Hence, the shared currency is gaining strength against the US Dollar. The US Dollar is becoming less valuable due to concerns expressed by Fed officials.

Fed Concerns and Upcoming Economic Data Impact on EUR/USD Pair

Federal Reserve (Fed) officials have recently voiced concerns about the potential challenges posed by higher long-term US bond yields on future interest rate adjustments. Atlanta's Fed President, Raphael Bostic, has expressed his view that the current monetary policy is already relatively restrictive, indicating that he doesn't see a necessity for further interest rate hikes.

As a result, the US Dollar has been on a downward trajectory, currently trading around 105.70. Despite the small recovery in US Treasury yields, the US dollar has been facing challenges. The 10-year US Treasury bond yield stands at 4.64%, which is slightly lower than previously. It is also worth noting that the decine in the US dollar began last week.

Investors are monitoring economic data, with attention to inflation indicators. Notably, the focus will be on the Producer Price Index (PPI) coming out on Wednesday, and the release of the FOMC meeting minutes and the Consumer Price Index (CPI) on Thursday. These reports will provide further understandings regarding the Fed's decision-making.

ECB's Caution and German Yields Impact on EUR/USD Pair

On the flip side, the rise in German bond yields was seen as a one of the key factor that hindering the upward momentum of the EUR/USD pair. This is due to anticipation that the European Central Bank will stop its interest rate hikes. These anticipation arise after the member of the European Central Bank, Francois Villeroy de Galhau, said that raising interest rates further is not the right thing to do for now.

During an interview with a French newspaper, ECB President Christine Lagarde said that the ECB's main interest rates are currently at a level that, if they remain there for some time, will help bring inflation back to the desired 2%. She's confident about achieving this target. Lagarde is also optimistic about Europe's gas reserves. Predictions indicate that Germany's inflation might slow down, which makes it less likely for the ECB to alter interest rates.

Therefore, this news could limit the EUR/USD pair's upward movement as expectations of the ECB pausing interest rate hikes and slowing German inflation may weigh on the Euro.

EUR/USD - Technical Analysis

The EUR/USD currency pair, as indicated by the 4-hour chart, is trading at 1.0605. It finds its pivot point at 1.05445. On the upside, immediate resistance stands at 1.06413, with further resistances at 1.06974 and 1.07942. Conversely, the pair sees support at 1.04907, with subsequent levels at 1.03939 and 1.03389.

The Relative Strength Index (RSI) records a value of 59.58, signaling a healthy bullish momentum without reaching the overbought territory.

The MACD, with a reading of 0.00048, is slightly below its signal line, marked at 0.00207, hinting at a potential pause in the bullish momentum.

Importantly, the EUR/USD's current price is perched above the 50-day Exponential Moving Average (EMA) of 1.05612, emphasizing its short-term bullish trajectory.

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Daily Price Outlook

The EUR/USD currency pair, often closely watched by forex traders, has witnessed notable movement recently. As of the latest data, this pair is trading at 1.07189. A deeper dive into its 4-hour chart reveals significant price levels that traders should be mindful of. The pair's pivot point is currently situated at 1.0648. On the upside, resistance is expected at 1.0808, followed by subsequent resistances at 1.1040 and 1.1201. Conversely, should the pair take a bearish turn, immediate support is pegged at 1.0413, with additional supports waiting at 1.0252 and 1.0021.

From a technical analysis perspective, the Relative Strength Index (RSI) provides crucial insights, currently recording a value of 41.02. Generally, an RSI below 50 leans towards a bearish sentiment, hinting that sellers might be gaining some ground. However, there's a glimmer of hope for bulls as the Moving Average Convergence Divergence (MACD) value of 0.00067 against its signal value of -0.00678 suggests potential bullish momentum in the near term. This divergence often hints at possible upward price shifts. Moreover, the 50-Day Exponential Moving Average (EMA), a valuable tool for gauging short-term price trends, stands at 1.0538. As the current trading price hovers above this EMA, it may suggest that the bullish sentiment could continue in the near term.

On the charting front, the EUR/USD pair's trajectory indicates that it might find a robust support level near 1.0538. Successfully maintaining a stance above this crucial level would be vital for the currency pair to affirm its short-term bullish momentum. In wrapping up, while the immediate trend for the EUR/USD seems optimistic, traders should always be alert to global economic fluctuations and events, which can introduce unexpected volatility into the mix.

EUR/USD - Trade Idea

Entry Price – Buy Limit 1.05388

Take Profit – 1.06000

Stop Loss – 1.05044

Risk to Reward – 1: 1.7

Profit & Loss Per Standard Lot = +$612/ -$344

Profit & Loss Per Micro Lot = +$61/ -$34

Daily Price Outlook

During the European session on Monday, the EUR/USD pair failed to stop its bearish trend and remained on a downward path. It hovered around 1.0530 level. However, the primary reason behind this decline is heightened risk aversion triggered by the ongoing conflict between Palestine and Israel. Investors tend to flock to the US Dollar during such uncertain times, elevating its value. Furthermore, the robust US job data further strengthened the appeal of the US Dollar, adding to the pressure on the Euro. On the flip side, the Euro faced challenges following mixed reports on Germany's industrial sector. Consequently, the EUR/USD pair experienced a 0.55% decline, trading at 1.0531 currently.

Economic Developments and Lagarde's Influence on EUR/USD

It is worth noting that Christine Lagarde, the President of the European Central Bank (ECB), believes that maintaining the current ECB interest rates for a prolonged period will help bring inflation back to the target of 2%. She expressed confidence in Europe's gas reserves situation as well. Hence, Lagarde's stance on interest rates and confidence in gas reserves might help EUR/USD pair to limit its deeper losses.

At the data front, official reports reveal that Germany's industrial production in August fell more than expected, indicating a sluggish manufacturing sector. The monthly drop was 0.2%, worse than the anticipated -0.1% and an improvement from July's -0.6%. On an annual basis, industrial production in Germany declined by 2.0% in August, compared to a 1.7% decrease in July. This news has led to the Euro losing ground against the US Dollar, with the EUR/USD pair down 0.55% for the day, trading at 1.0531 as of now.

Global Factors Affecting EUR/USD: US Jobs Report and Geopolitical Tensions

Across the ocean, the US jobs report for September impacted the EUR/USD pair. Initially, it pushed the pair down due to better-than-expected job growth, with 336,000 new jobs against an expected 170,000. However, the Euro gained ground later.

On the other side, the conflict in the Middle East involving Hamas and Israel is closely watched, causing market worries about potential wider repercussions. The US Dollar Index (DXY) bounced back due to higher US Treasury yields, sitting at around 106.30. Investors are also eyeing the IMF meeting and the US Core Producer Price Index later this week for economic insights.

EUR/USD - Technical Analysis

The EUR/USD currency pair, often closely watched by forex traders, has witnessed notable movement recently. As of the latest data, this pair is trading at 1.07189. A deeper dive into its 4-hour chart reveals significant price levels that traders should be mindful of. The pair's pivot point is currently situated at 1.0648. On the upside, resistance is expected at 1.0808, followed by subsequent resistances at 1.1040 and 1.1201. Conversely, should the pair take a bearish turn, immediate support is pegged at 1.0413, with additional supports waiting at 1.0252 and 1.0021.

From a technical analysis perspective, the Relative Strength Index (RSI) provides crucial insights, currently recording a value of 41.02. Generally, an RSI below 50 leans towards a bearish sentiment, hinting that sellers might be gaining some ground. However, there's a glimmer of hope for bulls as the Moving Average Convergence Divergence (MACD) value of 0.00067 against its signal value of -0.00678 suggests potential bullish momentum in the near term. This divergence often hints at possible upward price shifts. Moreover, the 50-Day Exponential Moving Average (EMA), a valuable tool for gauging short-term price trends, stands at 1.0538. As the current trading price hovers above this EMA, it may suggest that the bullish sentiment could continue in the near term.

On the charting front, the EUR/USD pair's trajectory indicates that it might find a robust support level near 1.0538. Successfully maintaining a stance above this crucial level would be vital for the currency pair to affirm its short-term bullish momentum. In wrapping up, while the immediate trend for the EUR/USD seems optimistic, traders should always be alert to global economic fluctuations and events, which can introduce unexpected volatility into the mix.

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Daily Price Outlook

As of October 6, the EUR/USD pair trades at 1.07179, a key point evident in the 4-hour chart. The pivot point for this currency pair stands at 1.0646. In the event of a bullish drive, traders should be observant of the immediate resistance positioned at 1.0801, followed by subsequent resistances at 1.1037 and 1.1195. For those with a bearish outlook, immediate support lies at 1.0407, with further supports anchored at 1.0252 and the crucial 1.0013 level.

Diving into the technical indicators, the Relative Strength Index (RSI) for EUR/USD stands at 39. This value, being below the midpoint of 50, showcases a bearish sentiment. However, it's worth noting that values nearing 30 are indicative of potentially oversold market conditions, which might hint at a reversal or consolidation soon. As for the MACD, the value stands at 0.00013 compared to its signal line at 0.00764. This close proximity suggests a potential crossover, which traders typically use to gauge momentum shifts.

Further supporting the analysis, the price of the EUR/USD is juxtaposed against the 50-Day Exponential Moving Average (EMA), currently positioned at 1.0534. The current price stance relative to this EMA can provide insights into the short-term trend. Moreover, our chart analysis reveals a downward channel with resistance extending at $1.0550.

The 50 EMA, suggesting selling opportunities, aligns closely at 1.0542. These combined elements suggest a bearish undertone in the market.

In conclusion, the EUR/USD's prevailing trend looks bearish, especially if the pair continues to navigate below the 1.0540 mark.

Should it breach this pivotal level, the dynamics could shift in favor of the bulls. As for the short-term trajectory, depending on its behavior near the 1.0540 pivot, the EUR/USD could either challenge the immediate resistance at 1.0801 or find solace near the 1.0407 support in the upcoming trading sessions.

EUR/USD - Trade Idea 

Entry Price – Sell Limit 1.05513

Take Profit – 1.05012

Stop Loss – 1.05866

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$501/ -$353

Profit & Loss Per Micro Lot = +$50/ -$35

Daily Price Outlook

Despite positive economic data from Germany, the EUR/USD currency pair is y moving lower after two days of gains. It is now trading slightly lower at around 1.0540 during the European session on Friday. However, this drop could be because the European Central Bank (ECB) is expected to keep its current interest rates unchanged, which is weighing on the shared currency and contributing to the EUR/USD pair losses. Meanwhile, the broad-based US Dollar strength has played its major role in undermining the EUR/USD currency pair.

Notably, the EUR/USD pair is facing downward pressure before the release of US economic data. As of now, the EUR/USD pair is down by 0.09% on the day, trading at 1.0535.

German Industrial Orders Improve, ECB's Future Stance on Rates

According to data from the Federal Statistics Office of Germany, factory orders in August bounced back strongly, indicating a positive trend in the country's manufacturing sector. On a monthly basis, orders for German-made goods surged by 3.9%, surpassing expectations of a 1.8% increase and reversing a previous decline of -11.3%.

Industrial orders in Germany showed a notable improvement in August when we compare them to the same period last year. In August, they declined by 4.2%, which represents a significant improvement compared to the steep 10.1% drop observed in July. Additionally, Germany's trade surplus for August did experience a slight dip, decreasing from €17.7 billion in July to €16.6 billion. However, it still exceeded the market's anticipated figure of €15.0 billion.

Looking ahead, the European Central Bank (ECB) is expected to keep its current interest rates unchanged at 4.50% in the upcoming meeting later this month. Insights from ECB Governing Council member Mario Centeno on Wednesday indicated that inflation in the Eurozone is declining faster than previously expected. This suggests that the current rate cycle may have come to an end given the prevailing economic conditions.

US Dollar Rebounds and Treasury Yields Hold Steady: Impact on EUR/USD

Furthermore, the broad-based US dollar, measured by the US Dollar Index (DXY), is making a comeback, currently trading at around 106.50. This follows a recent climb to an 11-month high earlier in the week. US Treasury yields are holding steady, hanging near their highest levels in years. Investors are being cautious due to the US Federal Reserve's (Fed) tough stance on interest rates. The 10-year US Treasury yield is still above 4.70%, close to its highest since 2007.

On the data front, US Initial Jobless Claims for the week ending September 29 increased slightly to 207K, surpassing the expected 210K. On a positive note, US Challenger Job Cuts decreased significantly from 75.151K to 47.457K in September. Investors are waiting for the upcoming release of US Nonfarm Payrolls and Average Hourly Earnings, expected to confirm the strong job market. Good numbers might boost the US dollar and increase losses in the EUR/USD pair.

EUR/USD - Technical Analysis

As of October 6, the EUR/USD pair trades at 1.07179, a key point evident in the 4-hour chart. The pivot point for this currency pair stands at 1.0646. In the event of a bullish drive, traders should be observant of the immediate resistance positioned at 1.0801, followed by subsequent resistances at 1.1037 and 1.1195. For those with a bearish outlook, immediate support lies at 1.0407, with further supports anchored at 1.0252 and the crucial 1.0013 level.

Diving into the technical indicators, the Relative Strength Index (RSI) for EUR/USD stands at 39. This value, being below the midpoint of 50, showcases a bearish sentiment. However, it's worth noting that values nearing 30 are indicative of potentially oversold market conditions, which might hint at a reversal or consolidation soon. As for the MACD, the value stands at 0.00013 compared to its signal line at 0.00764. This close proximity suggests a potential crossover, which traders typically use to gauge momentum shifts.

Further supporting the analysis, the price of the EUR/USD is juxtaposed against the 50-Day Exponential Moving Average (EMA), currently positioned at 1.0534. The current price stance relative to this EMA can provide insights into the short-term trend. Moreover, our chart analysis reveals a downward channel with resistance extending at $1.0550.

The 50 EMA, suggesting selling opportunities, aligns closely at 1.0542. These combined elements suggest a bearish undertone in the market.

In conclusion, the EUR/USD's prevailing trend looks bearish, especially if the pair continues to navigate below the 1.0540 mark.

Should it breach this pivotal level, the dynamics could shift in favor of the bulls. As for the short-term trajectory, depending on its behavior near the 1.0540 pivot, the EUR/USD could either challenge the immediate resistance at 1.0801 or find solace near the 1.0407 support in the upcoming trading sessions.

Related News

Daily Price Outlook

The EUR/USD pair has exhibited a notable trajectory in the financial market as of October 04. Currently, the currency pair is trading around the 1.0501 mark, reflecting the intricate interplay of global financial factors and currency dynamics. From a technical standpoint, several pivotal price points have emerged. The pivot point for the pair is identified at 1.0501. On the bullish side of the spectrum, immediate resistance looms at 1.0551, with subsequent resistances identified at 1.05912 and 1.06601. Conversely, for potential downward shifts, immediate support is situated at 1.04505, succeeded by supports at 1.04015 and 1.03262.

Diving into the technical indicators, the Relative Strength Index (RSI) for the EUR/USD stands at 34. An RSI below 50 suggests a bearish sentiment, and with the current value being even closer to 30, it is inching towards the oversold territory. The 50-Day Exponential Moving Average (50 EMA) is marked at 1.055. With the current price of the pair being below this level, it indicates a short-term bearish trend. The 50 EMA is also offering resistance at this mark, further solidifying the bearish perspective.

From a chart pattern perspective, the observed downward channel suggests a selling trend for the pair. This sentiment is echoed by the 50-day EMA, which also advocates for a selling trend, further establishing the resistance around the 1.055 mark.

In terms of the broader trend, the prevailing sentiment for the EUR/USD pair appears to be bearish. Over the short term, market participants might look to adopt a strategy of selling below 1.055 and considering buy positions above this level. As always, it's crucial for traders and investors to stay updated with any fundamental news that might influence market dynamics and adjust their strategies accordingly.

EUR/USD - Trade Idea

Entry Price – Sell Limit 1.05180

Take Profit – 1.04032

Stop Loss – 1.06021

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$1148/ -$841

Profit & Loss Per Micro Lot = +$114/ -$84

Daily Price Outlook

Despite the strong US dollar, the EUR/USD currency pair is bouncing back after a two-day slide, hovering near a 10-month low reached on Tuesday. It's now trading higher around 1.0480 during early European trading on Wednesday. The rebound is thanks to better-than-expected Eurozone PMI data, which is boosting confidence in the Euro. However, Eurozone Retail Sales didn't fare as well, falling 2.1% YoY in August, worse than the expected -1.2%. This disappointing retail sales figure might limit the gains for the EUR/USD pair as it counters the positive impact of the PMI data.

EUR/USD Under Pressure Amid Fed's Rate Outlook

It's important to note that the EUR/USD pair is under pressure due to concerns about the US Federal Reserve's plans for interest rates. The US Dollar Index (DXY) has pulled back from an 11-month high it hit on Tuesday, and it's currently trading around 106.90. The US Dollar got stronger because of good US job numbers and higher yields on US Treasury bonds. The 10-year US Bond yield reached its highest level since 2007, reaching 4.85% on Wednesday. This was driven by better-than-expected US JOLTS Job Openings data, which showed there were 9.61 million job openings in August, beating expectations.

Furthermore, the Fed has a more aggressive stance on keeping interest rates up for a longer time, which is boosting confidence in the US dollar. Cleveland Federal Reserve President Loretta Mester even suggested they might raise rates at the next meeting if the economy stays strong. However, Atlanta Fed President Raphael Bostic took a more patient approach, saying there's no rush to change rates. Investors are waiting for more US job data, including the ADP report on Wednesday and the Nonfarm Payrolls report on Friday.

Eurozone Economic Highlights and ECB Outlook

On the Euro side, the positive Eurozone HCOB Purchase Manufacturing Index (PMI) data could offer some support for the Euro. The report for September showed that the Composite PMI improved slightly to 47.2 from the previous 47.1, which was expected to stay the same. German Composite PMI also inched up to 46.4 from 46.2 before, and the Services PMI increased to 50.3, surpassing the expected 49.8.

Thereby, the European Central Bank (ECB) is being careful about raising interest rates. Some officials are hopeful about inflation, while others, like ECB Chief Economist Philip Lane, are cautious. These different opinions show that the Eurozone's economic situation is uncertain and could affect the Euro's strength.

EUR/USD - Technical Analysis

The EUR/USD pair has exhibited a notable trajectory in the financial market as of October 04. Currently, the currency pair is trading around the 1.0501 mark, reflecting the intricate interplay of global financial factors and currency dynamics. From a technical standpoint, several pivotal price points have emerged. The pivot point for the pair is identified at 1.0501. On the bullish side of the spectrum, immediate resistance looms at 1.0551, with subsequent resistances identified at 1.05912 and 1.06601. Conversely, for potential downward shifts, immediate support is situated at 1.04505, succeeded by supports at 1.04015 and 1.03262.

Diving into the technical indicators, the Relative Strength Index (RSI) for the EUR/USD stands at 34. An RSI below 50 suggests a bearish sentiment, and with the current value being even closer to 30, it is inching towards the oversold territory. The 50-Day Exponential Moving Average (50 EMA) is marked at 1.055. With the current price of the pair being below this level, it indicates a short-term bearish trend. The 50 EMA is also offering resistance at this mark, further solidifying the bearish perspective.

From a chart pattern perspective, the observed downward channel suggests a selling trend for the pair. This sentiment is echoed by the 50-day EMA, which also advocates for a selling trend, further establishing the resistance around the 1.055 mark.

In terms of the broader trend, the prevailing sentiment for the EUR/USD pair appears to be bearish. Over the short term, market participants might look to adopt a strategy of selling below 1.055 and considering buy positions above this level. As always, it's crucial for traders and investors to stay updated with any fundamental news that might influence market dynamics and adjust their strategies accordingly.

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Daily Price Outlook

The EUR/USD forex pair has been showing interesting movements lately. On close inspection around the 1.0600 level, we observe a mild bearish inclination. This, however, doesn't overshadow the optimism brought about by the stochastic indicator's positive momentum. This momentum suggests there is potential for a bullish trend throughout the day, particularly targeting the 1.0675 region.

But every coin has two sides. While the future seems to hint at a bullish dominance, particularly if the pair successfully surpasses the 1.0600 mark, there are also challenges ahead. If the pair were to dip below 1.0550, this would likely spell an end to any bullish hopes, sending the pair down a more bearish path. For today, traders might expect the currency pair to oscillate between the 1.0520 support and 1.0660 resistance.

Diving deeper into the technical side of things, the pivot point stands at 1.0572 on a 4-hour chart. On the higher side, we have immediate resistances poised at 1.0658, followed by 1.0739 and then at 1.0907. On the flip side, supports are situated at 1.0488, trailing down to 1.0405 and further to 1.0238.

From an indicator's standpoint, the RSI, currently at 45, offers a neutral yet slightly bearish sentiment. It’s teetering in the middle, neither signaling an overbought nor an oversold condition. Another critical metric to monitor is the 50-Day Exponential Moving Average, which currently hovers around 1.06082. This figure could act as a litmus test for the market’s short-term direction.

Furthermore, the charts illustrate a downward trendline. This trendline exerts resistance, notably at the crucial 1.0600 juncture. The importance of this pattern cannot be stressed enough; a break here could catalyze a significant shift in momentum.

Conclusively, the fate of the EUR/USD in the short term appears to be hinged on the 1.0600 threshold. The sentiment is bearish beneath this level and bullish above it. Given the present technical indicators, it wouldn't be a stretch to anticipate the currency pair approaching the 1.0658 resistance soon, provided the bullish momentum sustains.

EUR/USD - Trade Idea

Entry Price – Sell Below 1.05720

Take Profit – 1.04878

Stop Loss – 1.06243

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$842/ -$523

Profit & Loss Per Micro Lot = +$84/ -$52

Daily Price Outlook

During the early European session, the EUR/USD pair struggled to make significant gains and mostly hovered around the mid-1.0500s. However, the reason behind this was the growing belief that the Federal Reserve (Fed) might tighten its policies further, causing US Treasury bond yields to rise.

This, in turn, strengthened the US Dollar (USD) and weighed on the EUR/USD pair. Moreover, the possibility of the European Central Bank (ECB) postponing any additional interest rate hikes also weighed on the pair. On the flip side, a general risk-on sentiment in the market limited the demand for the safe-haven US Dollar, providing some support to the EUR/USD pair.

Market Sentiment Boosts EUR/USD, but ECB Rate Cut Speculations Linger

The global market sentiment is rising thanks to better-than-expected Chinese PMI data and the US government passing a temporary funding bill. This positive mood is keeping the US Dollar (USD) from surging and is giving some support to the EUR/USD pair. Conversely, many people think the European Central Bank (ECB) might cut interest rates in the future, keeping the Euro lower.

Recent data suggests that high inflation in the Eurozone might be slowing down, and there's even speculation about the Eurozone economy shrinking in the coming months. This has led to doubts about further ECB rate hikes, especially after the latest consumer inflation figures dropped from 5.3% to 4.5% in September.

US Dollar Strength Amid Fed's Tightening and Upcoming Data

The broad-based US dollar is generally strong because most believe the Federal Reserve (Fed) will keep tightening its policies. This makes the EUR/USD pair struggle to go up. The US PCE Price Index, a measure of inflation, increased as expected, showing a 3.5% rise in the past year through August.

However, the Core PCE Price Index, which the Fed prefers, eased slightly to 3.9% in August. Despite this, higher consumer spending and rising gas prices indicate that inflation will remain a concern. This means the Fed will likely stick to its tough stance, keeping interest rates high, which supports the US dollar and higher bond yields.

Looking ahead, traders seem cautious to place any strong bids as they are waiting for crucial US economic data coming at the start of the month. The week starts with the US ISM Manufacturing PMI release and a speech by Fed Chair Jerome Powell. These events will affect the US dollar's value and provide direction for the EUR/USD pair later in the North American session.

EUR/USD - Technical Analysis

The EUR/USD forex pair displays intriguing movements around the 1.0600 level, hinting at a mild bearish tilt. Yet, the stochastic indicator's positive momentum suggests possible bullish activity, targeting the 1.0675 region. However, any decline below 1.0550 could curb bullish prospects. Today's trading might range between 1.0520 support and 1.0660 resistance.

Technically, the 4-hour chart's pivot point is 1.0572, with resistances at 1.0658, 1.0739, and 1.0907; supports lie at 1.0488, 1.0405, and 1.0238. The RSI, at 45, shows neutrality leaning bearish.

The 50-Day EMA stands around 1.06082, potentially indicating the market's short-term trend. A notable downward trendline presents resistance at 1.0600; breaching this could change momentum. In summary, EUR/USD's short-term trajectory hinges on the 1.0600 mark, with a potential move towards the 1.0658 resistance if bullish momentum continues.

Daily Price Outlook

During the European session on Wednesday, the EUR/USD pair failed to stop its losing streak and experienced a significant decline, dropping to around 1.0550, the lowest point since March 16. However, this marked a clear bearish phase for the pair. However, the reason for its downward trend could be linked to the bullish US dollar, which was backed by the Federal Reserve's hawkish stance. Consequently, the USD gained ground against major currencies, including the Euro. On the flip side, the European Central Bank (ECB) adopted a dovish approach regarding rate hikes, which weighed down the Euro. This dovish stance contributed to the potential for further losses for the EUR/USD pair.

Factors Driving the Strength of the US Dollar and its Impact on EUR/USD Pair

The broad-based US dollar has been gaining traction and is currently near a 10-month high. However, this surge is primarily driven by the belief that the Federal Reserve will maintain high interest rates for the future. The Federal Reserve recently hinted at the possibility of raising interest rates again within this year due to concerns about persistent inflation. Another factor that has been boosting the US dollar is the tendency of investors to seek safety in it during uncertain times. This behavior further adds downward pressure on the EUR/USD pair.

Factors Influencing EUR/USD Pair and Key Events to Monitor

Apart from this, the European Central Bank (ECB) recently hinted at maintaining low interest rates, which was seen as another key factor that has been weighing on the EUR/USD pair. Meanwhile, the ECB revised down its forecasts for inflation and economic growth in 2024 and 2025, indicating a slowdown in potential rate hikes. Moreover, there's also a growing discussion about a contraction in the economy later in the year, suggesting that the ECB's tightening policy might have reached its peak. All these factors has been pushing the EUR/USD pair down.

Looking ahead, traders are watching the German Consumer Confidence, US Durable Goods Orders, German inflation data, and final US economic growth numbers. Fed Chair Jerome Powell's speech and US price index at week's end will be key events to watch.

EUR/USD - Technical Analysis

The EUR/USD pair demonstrates an enhanced bearish tendency, progressively nearing our anticipated target of 1.0515. We project the persistence of this negative trajectory, aiming for further declines towards the 1.0440 zone.

Within the context of the bearish channel depicted on the chart, and backed by the downward pressure from the EMA50, the bearish outlook remains pertinent for the foreseeable future.

It's crucial to underscore that maintaining levels below 1.0635 is a primary prerequisite to realize these targets. Today's projected trading band spans from a support at 1.0470 to a resistance at 1.0620, with the prevailing sentiment being bearish.