Daily Price Outlook

The EUR/USD currency pair failed to stop its losing streak and experienced selling pressure as it approached the psychological resistance level of 1.1000 during the Asian session. Investors became cautious ahead of the release of United States labor market data, which will be published at 12:15 GMT. Moreover, the significant losses in S&P500 futures added to the overall cautious sentiment among investors. This apprehensive sentiment can be attributed to the recent downgrade of the United States economy by credit rating firm FITCH from 'AAA' to 'AA+'

US Dollar Index Bounces Back Despite Weak Economic Indicators

Despite the downgrade in the US economy, the US Dollar Index (DXY) bounced back after a slight dip and reached around 102.00. This surprising recovery happened even though there were disappointing economic data. US Job Openings data, which came in at 9.582 million, fell short of the previous release of 9.62 million, suggesting a potential slowdown in hiring. Furthermore, the US Manufacturing PMI contracted for the ninth month in a row, recording 46.4, lower than the expected 46.8. However, Factory Orders performed better than expected at 47.3, surpassing the forecasted 44.0.

Hence, the disappointing US economic data and the surprising rebound in the US Dollar Index (DXY) may put downward pressure on the EUR/USD currency pair.

Eyes on US Employment Data and Eurozone Inflationary Pressures

Looking forward to this Wednesday, the spotlight is on the US Employment data from ADP. Experts anticipate a slower increase of 188,000 private payrolls following June's surprising surge of 497,000 new jobs. On the other side, the Eurozone witnessed a 0.1% drop in inflation for July. However, the impressive GDP performance during the April-June quarter may prompt the ECB to consider raising interest rates.

Investors are eagerly awaiting the Retail Sales data later this week, as strong consumer spending momentum could fuel hawkish expectations for the ECB. All these factors will be closely monitored as they impact the global financial landscape.

Thus, the US Employment data and potential interest rate changes by the ECB may influence the EUR/USD currency pair, with positive US data possibly strengthening the USD against the EUR.

EUR/USD - Technical Analysis

In a captivating turn of events, EUR/USD has made a remarkable rebound, finding sturdy support in the medium-term upward trend line and the 50-day SMA. This surge in positive momentum has lifted the pair to new heights in early trading today, following its recent pursuit to discover a bottom.

Adding to the thrill, the RSI's favorable signals, after a daring venture into oversold territory, are now doubling down on the positive pressures, setting the stage for an exhilarating ride in the upcoming trading sessions.

As we buckle up for this thrilling journey, all eyes are on the target - the initial resistance at 1.1130. But, hold on tight, as this thrilling ascent is contingent upon the pivotal support level of 1.0970 holding firm.

The adventure doesn't end there! The projected trading range for today promises heart-racing action between the support level of 1.0865 and the resistance level of 1.1130.

Today's price prediction reads like a thrilling plot twist - it leans bullish! Traders are in for an adrenaline-pumping experience as they closely observe the price action and devise their trading strategies for EUR/USD.

Daily Price Outlook

The EUR/USD currency pair is still facing challenges as it struggles to maintain its position above the 1.1000 mark on Tuesday. However, this decline can be attributed to fresh hints from the European Central Bank (ECB) President Christine Lagarde about a possible pause in interest rate hikes in September. Although the ECB recently raised rates by 25 basis points to 4.25%, there are signs of easing inflationary pressures and growing concerns about a recession.

Market players are anxiously waiting for the US Manufacturing Purchasing Managers Index (PMI) data, as it could provide fresh insights and influence the market's direction. The pair's downward trend continues, keeping the market uncertain.

Mixed Economic Data from Europe and the US Impact EUR/USD

Furthermore, the previosly released economic data from Europe and the US is also impacting the EUR/USD pair. In the Eurozone, the Core Harmonized Index of Consumer Prices (HICP) for July rose by 5.5% YoY and 5.3% for the headline CPI. In the meantime, the flash Q2 Eurozone Gross Domestic Product (GDP) expanded by 0.3% QoQ and 0.6% YoY. German Retail Sales for June increased by 1.6% YoY, but the monthly figure fell by -0.8%, worse than expected.

In the US, the PCE Price Index for June grew at a slower rate of 3% compared to May's 3.8%. Despite these mixed indicators, the US Dollar remains strong, which was seen as another key factor that kept the EUR/USD currency pair under pressure.

Market Focus on Upcoming Economic Data

Looking forward, the market participants are monitoring the global Manufacturing PMI data and the German Unemployment rate for June. However, the upcoming US Nonfarm Payrolls report, scheduled for Friday, will be a significant highlight of the week.

The focus on these crucial economic data releases in both the US and Europe will put the data-dependent approach of the Federal Reserve and the European Central Bank (ECB) to the test when making decisions on interest rates.

EUR/USD - Technical Analysis

The EUR/USD pair is currently at an intriguing juncture as it approaches the crucial resistance level at 1.1055. Interestingly, we observe a calm decline from this resistance point, and the pair is now hovering near the primary support line of a bullish channel.

Adding to the excitement, the chart reveals the price staying below the neckline of a double top pattern, while the EMA50 exerts its influence with negative pressure. Moreover, the stochastic indicator is signaling a negative overlap, adding further intrigue to the mix.

In light of these compelling factors, our forecast leans towards a bearish bias in the upcoming trading sessions. This prompts us to set our initial targets on breaking the support line of the bullish channel.

Should this support be breached, it may potentially pave the way for further declines, with potential targets at 1.0935, followed by 1.0835 once the previous level is surpassed.

However, we must remain alert to the possibility of a game-changer, as breaching the 1.1055 resistance level would invalidate the bearish scenario, leading the price to potentially resume its main bullish trajectory, and setting sights on the 1.1170 areas as the initial target.

Today's trading session promises excitement within the range of 1.0920 support and 1.1070 resistance, keeping traders on their toes and providing ample opportunities for strategic moves.

Daily Price Outlook

The EUR/USD pair is currently at an intriguing juncture as it approaches the crucial resistance level at 1.1055. Interestingly, we observe a calm decline from this resistance point, and the pair is now hovering near the primary support line of a bullish channel.

Adding to the excitement, the chart reveals the price staying below the neckline of a double top pattern, while the EMA50 exerts its influence with negative pressure. Moreover, the stochastic indicator is signaling a negative overlap, adding further intrigue to the mix.

In light of these compelling factors, our forecast leans towards a bearish bias in the upcoming trading sessions. This prompts us to set our initial targets on breaking the support line of the bullish channel.

Should this support be breached, it may potentially pave the way for further declines, with potential targets at 1.0935, followed by 1.0835 once the previous level is surpassed.

However, we must remain alert to the possibility of a game-changer, as breaching the 1.1055 resistance level would invalidate the bearish scenario, leading the price to potentially resume its main bullish trajectory, and setting sights on the 1.1170 areas as the initial target.

Today's trading session promises excitement within the range of 1.0920 support and 1.1070 resistance, keeping traders on their toes and providing ample opportunities for strategic moves.

EUR/USD - Trade Idea

Entry Price – Sell Limit 1.10382

Take Profit – 1.09503

Stop Loss – 1.10958

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$879/ -$576

Profit & Loss Per Micro Lot = +$87/ -$57

Daily Price Outlook

During the early Asian session on Monday, the EUR/USD pair experienced some buying interest, leading to a slight positive movement near 1.1025. This recovery comes after two weeks of losses and was supported by softer US data, as well as recent remarks from ECB officials and Federal Reserve policymakers.

ECB President Christine Lagarde referred to the recent economic output figures from France, Germany, and Spain as "quite optimistic" in an interview with French newspaper Le Figaro over the weekend.

Joachim Nagel, president of the Bundesbank of Germany and an ECB Governing Council member, also supported hawkish ECB policies, citing persistent core inflation and advocating for higher interest rates to be maintained for a longer period.

Conversely, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, expressed concerns about job losses and weaker growth, while acknowledging the inflation forecast. He also questioned the central bank's aggressive monetary tightening program to control price increases.

News reports suggesting further Chinese stimulus are putting pressure on the US Dollar, allowing the EUR/USD pair to recover from a three-week low on Friday, despite recent losses.

The US Federal Reserve's preferred inflation indicator, the Core Personal Consumption Expenditure (PCE) Price Index, showed weaker-than-expected readings for June, easing to 4.1% YoY, below the predicted 4.2% and the previous 4.6%.

Additionally, Personal Income decreased to 0.3%, falling short of the expected 0.5% and previous readings, while Personal Spending increased by 0.5%, surpassing market expectations of 0.4% and the earlier 0.1%. Moreover, the final readings of the Michigan Consumer Sentiment Index for July declined from the initial estimate of 72.6 to 71.6, and the University of Michigan's (UoM) 5-year Consumer Inflation expectations also decreased from 3.1% to 3.0%.

EUR/USD - Technical Analysis

The EUR/USD pair has approached a significant resistance level at 1.1055 and is now experiencing a gradual decline, moving closer to the main bullish channel's support line. Notably, the price remains below the neckline of a double top pattern, which is visible on the chart.

Additionally, the EMA50 is exerting downward pressure on the price, and the stochastic indicator is currently showing negative overlap.

Considering these factors, it is prudent to adopt a bearish bias for the upcoming sessions. The initial targets for the bearish scenario involve breaking below the bullish channel's support line, potentially leading to further declines towards 1.0935 and 1.0835 levels upon surpassing the previous level of support.

However, a breach of the key resistance level at 1.1055 would invalidate the bearish scenario and signal a potential resumption of the main bullish trend, with potential targets around the 1.1170 areas initially.

For today's trading, the projected range is expected to lie between the support level at 1.0920 and the resistance level at 1.1070.

Daily Price Outlook

The EUR/USD pair has approached a significant resistance level at 1.1055 and is now experiencing a gradual decline, moving closer to the main bullish channel's support line. Notably, the price remains below the neckline of a double top pattern, which is visible on the chart.

Additionally, the EMA50 is exerting downward pressure on the price, and the stochastic indicator is currently showing negative overlap.

Considering these factors, it is prudent to adopt a bearish bias for the upcoming sessions. The initial targets for the bearish scenario involve breaking below the bullish channel's support line, potentially leading to further declines towards 1.0935 and 1.0835 levels upon surpassing the previous level of support.

However, a breach of the key resistance level at 1.1055 would invalidate the bearish scenario and signal a potential resumption of the main bullish trend, with potential targets around the 1.1170 areas initially.

For today's trading, the projected range is expected to lie between the support level at 1.0920 and the resistance level at 1.1070.

 EUR/USD - Trade Idea

Entry Price – Sell Limit 1.10653

Take Profit – 1.09503

Stop Loss – 1.11643

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1150/ -$990

Profit & Loss Per Micro Lot = +$115/ -$99

Daily Price Outlook

The EUR/USD pair is exhibiting a more pronounced bullish bias as it initiates attempts to breach the 1.1105 level. This indicates a potential resumption of the bullish trend, signaling an end to the recent bearish correction that has characterized recent trades. The pair aims for further gains, targeting the next positive station at 1.1170.

Consequently, a bullish trend is anticipated for today, with expectations of gaining positive momentum to facilitate a breakthrough of the current areas and achieve further gains reaching 1.1210, followed by 1.1275 in the near-term. It is important to note that a break below 1.1055 would halt the positive scenario and prompt a potential decline in price.

Furthermore, it is crucial to consider the potential impact of the Federal Reserve's rate hike, as it is also likely to exert slight bearish pressure on the EUR/USD pair.

For today's trading, the projected range lies between the support level at 1.1040 and the resistance level at 1.1190.

EUR/USD - Trade ideas

Entry Price – Sell Limit 1.11432

Take Profit – 1.10680

Stop Loss – 1.11880

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$752/ -$448

Profit & Loss Per Micro Lot = +$75/ -$44

Daily Price Outlook

On Monday, the EUR/USD currency pair demonstrated a positive performance, rising by +0.19% within a 24-hour period and stabilizing at $1.1141. This marked the end of a 7-day losing streak, as the pair rebounded from losses incurred during the previous two sessions.

US Dollar Under lost its 5-Day winning Streak

During the early hours of Monday's trading session, signs of further recovery were evident, largely attributed to the declining prices of the US Dollar Index, which saw a decrease of -0.17% on a daily basis, settling at 100.90.

Additionally, the 10-year treasury yield declined by -0.31% to 3.82, further exerting pressure on the greenback throughout the day. The US Dollar Index (DXY) experienced a drop after a 5-day consecutive rise, having reached its highest levels since April 2022 during the previous week. The decline in the greenback's value on Monday can be partially attributed to anticipation ahead of Federal Reserve Chairman Powell's scheduled speech on Wednesday.

Market expectations suggest that the Federal Reserve will raise interest rates in the upcoming FOMC meeting, putting an end to rate cuts. This development has already been factored into the market, resulting in a correction in the price of the greenback.

ECB's Anticipated Cautious Rate Increase

Meanwhile, in the European context, the European Central Bank (ECB) is anticipated to enact a 25 basis-points rate increase, adopting a cautious approach in light of concerns raised by certain European policymakers about the potential risks associated with aggressive tightening. The German economy's severe slump has added to these considerations. President Lagarde is likely to adopt a "data-dependent approach," refraining from committing to another hike during the September meeting.

The possibility of a "dovish hike" could have a negative impact on the euro, leading traders to adjust their expectations for further monetary tightening. Moreover, the release of PMI data from both the USA and European nations today will play a significant role in influencing the prices of EUR/USD in the upcoming hours. Market participants will closely monitor this data for insights into the economic health of the regions and its potential impact on the currency pair's movement.

 EUR/USD - Technical analysis

EUR/USD remained stagnant in recent sessions, trading within the 1.1105 support and 1.1170 resistance levels. The price must surpass either of these levels for clearer direction in its next targets.

As the price remains indecisive, a break below the support could lead to further declines targeting 1.1055 and 1.1000 levels. Conversely, breaching the resistance is crucial to resume the main bullish trend, aiming for 1.1275 and 1.1418 levels.

Expected trading range for today: 1.1050 (support) to 1.1210 (resistance).

Daily Price Outlook

EUR/USD remained stagnant in recent sessions, trading within the 1.1105 support and 1.1170 resistance levels. The price must surpass either of these levels for clearer direction in its next targets.

As the price remains indecisive, a break below the support could lead to further declines targeting 1.1055 and 1.1000 levels. Conversely, breaching the resistance is crucial to resume the main bullish trend, aiming for 1.1275 and 1.1418 levels.

Expected trading range for today: 1.1050 (support) to 1.1210 (resistance).

EUR/USD - Trade Idea

Entry Price – Buy Limit 1.11082

Take Profit – 1.12072

Stop Loss – 1.10615

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$990/ -$460

Profit & Loss Per Micro Lot = +$99/ -$46

Daily Price Outlook

EUR/USD experienced a bearish sentiment in yesterday's session, leading it to settle near the 38.2% Fibonacci correction level of the last bullish wave.

The pair also moved below the EMA50, creating negative pressure that could result in further bearish correction.

However, there are positive signals from the stochastic indicator that may support a return to the main bullish trend.

The conflicting signals from the technical indicators prompt us to adopt a cautious stance and wait for clearer signals to determine the next trend.

It's important to note that breaching the support level at 1.1105 could lead to additional downside targets at 1.1055 and 1.1000.

Conversely, breaking the resistance at 1.1170 would signal a potential continuation of the main bullish trend, targeting 1.1275 and 1.1418 as the next main objectives.

Expected trading range for today: 1.1050 (support) to 1.1230 (resistance).

EUR/USD - Trade Idea

Entry Price – Buy Limit 1.10998

Take Profit – 1.12003

Stop Loss – 1.10541

Risk to Reward – 1: 2.2

Profit & Loss Per Standard Lot = +$100/ -$45

Profit & Loss Per Micro Lot= +$10/ -$4

Daily Price Outlook

Currently, the intraday bias for EUR/USD remains neutral, but there is an expectation of a further rally. If the price breaks above 1.1011, it will resume the upward movement that started from 1.0634, with 1.1094 as the target resistance level.

EUR/USD Forecast: Corrective Decline in Progress

At the beginning of the day, the EUR/USD pair once again surpassed the 1.1200 level, but the increase was limited due to a deteriorating market sentiment. The pair reached a peak of 1.1228 before retracing to its current level around 1.1180.

The Asian trading session was marked by a bearish tone, driven by tensions between China and the US over the major Asian semiconductor sector and disappointing earnings announcements from companies like Tesla and Netflix.

US indexes lost momentum after a positive close, and Wall Street futures were trading negatively before the opening.

EUR/USD Price Analysis: Euro Approaches Support-Turned-Resistance at 1.1150 Ahead of ECB and Fed Verdicts

As market participants seek clear directions ahead of next week's monetary policy meetings of the European Central Bank and Federal Reserve (Fed), the EUR/USD pair reflects the impact of the first negative week in four and is currently holding modest gains between 1.1130 and 1.1140 in early Friday morning trading in Europe.

The Euro pair's performance is influenced by the need for significant data or events and conflicting concerns about the different central banks, which is creating uncertainty among traders.

In economic data, the US weekly jobless claims report showed a decrease to 228K, the lowest level since mid-May, surpassing market expectations of 242K. However, Existing Home Sales fell short of expectations, declining from 4.3 million to 4.16 million (annual rate) in a separate report.

On the other hand, Eurozone Consumer Confidence improved more than anticipated, rising from -16.0 to -15.1, according to the flash calculation for July.

EUR/USD - Technical analysis

EUR/USD experienced a bearish sentiment in yesterday's session, leading it to settle near the 38.2% Fibonacci correction level of the last bullish wave.

The pair also moved below the EMA50, creating negative pressure that could result in further bearish correction.

However, there are positive signals from the stochastic indicator that may support a return to the main bullish trend.

The conflicting signals from the technical indicators prompt us to adopt a cautious stance and wait for clearer signals to determine the next trend.

It's important to note that breaching the support level at 1.1105 could lead to additional downside targets at 1.1055 and 1.1000.

Conversely, breaking the resistance at 1.1170 would signal a potential continuation of the main bullish trend, targeting 1.1275 and 1.1418 as the next main objectives.

Expected trading range for today: 1.1050 (support) to 1.1230 (resistance).