EUR/USD Forecast: 1.0450 aligns as next hurdle for Euro
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- EUR/USD has started to consolidate its gains following Wednesday's rally.
- US Dollar stays under selling pressure on dismal PMI surveys, FOMC Minutes.
- The pair needs to clear 1.0450 to continue to push higher.
EUR/USD has managed to edge higher early Thursday after having registered impressive gains on Wednesday. The pair's near-term technical outlook points to overbought conditions but buyers could retain control in case it flips 1.0450 into support.
The US Dollar came under heavy selling pressure during the American trading hours on Wednesday after S&P Global PMI surveys showed that the economic activity in the private sector contracted sharply in early November. The Manufacturing PMI dropped to 47.6 from 50.4 and the Services PMI declined to 46.1 from 47.8. Regarding the price developments, "reflecting the slower growth of input costs, firms raised their selling prices at the slowest rate for just over two years," the publication noted.
Later in the day, the minutes of the Federal Reserve's last meeting revealed that most policymakers were in favour of slowing the pace of rate hikes amid uncertainty surrounding the policy lag. The US Dollar continued to weaken against its rivals after the Fed's publication and EUR/USD preserved its bullish momentum.
The IFO's sentiment surveys for Germany will be featured in the European economic docket but they are unlikely to trigger a significant market reaction. In the second half of the day, the trading action is likely to remain subdued as the stock and bond markets in the US will be closed in observance of the Thanksgiving Day Holiday. Hence, investors will keep a close eye on the pair's technical developments.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the four-hour chart climbed above 70 during Wednesday's upsurge, pointing to overbought conditions. In case the pair stages a technical correction, 1.0400 (psychological level, former resistance) is likely to act as support. If the pair falls below that level and starts using it resistance, sellers could show interest and drag it lower toward 1.0350 (50-period Simple Moving Average (SMA)) and 1.0300 (20-period SMA, psychological level).
On the upside, interim resistance is located at 1.0450 (static level). If buyers flip that level into support, additional gains toward 1.0500 (psychological level) and 1.0530 (static level) could be witnessed.
- EUR/USD has started to consolidate its gains following Wednesday's rally.
- US Dollar stays under selling pressure on dismal PMI surveys, FOMC Minutes.
- The pair needs to clear 1.0450 to continue to push higher.
EUR/USD has managed to edge higher early Thursday after having registered impressive gains on Wednesday. The pair's near-term technical outlook points to overbought conditions but buyers could retain control in case it flips 1.0450 into support.
The US Dollar came under heavy selling pressure during the American trading hours on Wednesday after S&P Global PMI surveys showed that the economic activity in the private sector contracted sharply in early November. The Manufacturing PMI dropped to 47.6 from 50.4 and the Services PMI declined to 46.1 from 47.8. Regarding the price developments, "reflecting the slower growth of input costs, firms raised their selling prices at the slowest rate for just over two years," the publication noted.
Later in the day, the minutes of the Federal Reserve's last meeting revealed that most policymakers were in favour of slowing the pace of rate hikes amid uncertainty surrounding the policy lag. The US Dollar continued to weaken against its rivals after the Fed's publication and EUR/USD preserved its bullish momentum.
The IFO's sentiment surveys for Germany will be featured in the European economic docket but they are unlikely to trigger a significant market reaction. In the second half of the day, the trading action is likely to remain subdued as the stock and bond markets in the US will be closed in observance of the Thanksgiving Day Holiday. Hence, investors will keep a close eye on the pair's technical developments.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the four-hour chart climbed above 70 during Wednesday's upsurge, pointing to overbought conditions. In case the pair stages a technical correction, 1.0400 (psychological level, former resistance) is likely to act as support. If the pair falls below that level and starts using it resistance, sellers could show interest and drag it lower toward 1.0350 (50-period Simple Moving Average (SMA)) and 1.0300 (20-period SMA, psychological level).
On the upside, interim resistance is located at 1.0450 (static level). If buyers flip that level into support, additional gains toward 1.0500 (psychological level) and 1.0530 (static level) could be witnessed.
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.