The EUR/USD pair advanced up to 1.1410 with the European opening, boosted by a decline in local share markets, as worldwide stocks fell following worse-than-expected Chinese trade data, and the ongoing dollar's negative tone.
The release of German CPI did little to affect the pair, as inflation remained unchanged in September this year, compared to September 2014, down to 0.0%. The pair however retraced some 30 pips, following poor inflation data in the UK, down to the 1.1380 as the dollar strengthened short term.
The release of the German ZEW survey sent the pair further lower, as according to October data, economic sentiment fell down 1.9 from previous 12.1, whilst the assessment of the current situation resulted at 55.2 from previous 67.5. The EU economic sentiment, according to the same survey, shrank to 30.1 matching expectations. With not much relevant data scheduled in the US, the pair will likely trade on sentiment.
View the Live chart of the EUR/USD
Currently around 1.1370, the 4 hours chart shows that the price is still well above its 20 SMA that presents a strong bullish tone and offers an immediate support around 1.1340, whilst the technical indicators lack directional strength near overbought levels. With no upward momentum but far from signaling an upcoming downward move, the pair needs to recover above the daily high to be able to extend its rally up to 1.1460 a major static resistance area.
Below the 1.1340 level however, the pair can extend its decline down to the 1.1290 region, where buying interest should surge to keep the bullish trend alive. A break below it, on the other hand, should lead to a test of the 1.1245 price zone.
Latest updates on the EUR/USD Forecast
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.