EUR/USD Forecast: Euro could extend correction ahead of key data
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 all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- EUR/USD fluctuates below 1.1050 on the first trading day of 2024.
- The near-term technical outlook points to a build-up of bearish momentum.
- The economic calendar will offer several high-tier data releases this week.
EUR/USD stays on the back foot and trades modestly lower on the day below 1.1050 in the first European session of 2024. The near-term technical outlook suggests that the pair could extend its downward correction. Investors, however, could refrain from taking large positions ahead of this week's important macroeconomic data releases.
EUR/USD rose more than 1% in December and registered gains for the second consecutive month as the US Dollar (USD) struggled to find demand, with investors anticipating a Federal Reserve (Fed) rate cut as early as March. On the other hand, European Central Bank (ECB) policymakers made it clear that it was too early for them to think about a policy pivot.
Later in the session, S&P Global will release revisions to December Manufacturing PMI for Germany, the Euro area and the US.
On Wednesday, ISM Manufacturing PMI and JOLTS Job Openings data will be featured in the US economic docket. Later in the day, the Fed will release the minutes of the December policy meeting. Inflation data from Germany and the Eurozone and the US jobs report could trigger big reactions in EUR/USD in the second half of the week.
EUR/USD Technical Analysis
EUR/USD stays below the mid-point of the ascending regression trend channel, currently located near 1.1050. Additionally, the Relative Strength Index (RSI) indicator on the 4-hour chart declined below 50, reflecting a lack of buyer interest.
In case 1.1050 stays intact as resistance, EUR/USD could stretch lower toward 1.1000 (psychological level, static level) and 1.0950 (Fibonacci 23.6% retracement of the latest uptrend).
On the upside, 1.1070 (20-period Simple Moving Average) aligns as interim resistance before 1.1100 (psychological level, static level) and 1.1140 (December 28 high).
- EUR/USD fluctuates below 1.1050 on the first trading day of 2024.
- The near-term technical outlook points to a build-up of bearish momentum.
- The economic calendar will offer several high-tier data releases this week.
EUR/USD stays on the back foot and trades modestly lower on the day below 1.1050 in the first European session of 2024. The near-term technical outlook suggests that the pair could extend its downward correction. Investors, however, could refrain from taking large positions ahead of this week's important macroeconomic data releases.
EUR/USD rose more than 1% in December and registered gains for the second consecutive month as the US Dollar (USD) struggled to find demand, with investors anticipating a Federal Reserve (Fed) rate cut as early as March. On the other hand, European Central Bank (ECB) policymakers made it clear that it was too early for them to think about a policy pivot.
Later in the session, S&P Global will release revisions to December Manufacturing PMI for Germany, the Euro area and the US.
On Wednesday, ISM Manufacturing PMI and JOLTS Job Openings data will be featured in the US economic docket. Later in the day, the Fed will release the minutes of the December policy meeting. Inflation data from Germany and the Eurozone and the US jobs report could trigger big reactions in EUR/USD in the second half of the week.
EUR/USD Technical Analysis
EUR/USD stays below the mid-point of the ascending regression trend channel, currently located near 1.1050. Additionally, the Relative Strength Index (RSI) indicator on the 4-hour chart declined below 50, reflecting a lack of buyer interest.
In case 1.1050 stays intact as resistance, EUR/USD could stretch lower toward 1.1000 (psychological level, static level) and 1.0950 (Fibonacci 23.6% retracement of the latest uptrend).
On the upside, 1.1070 (20-period Simple Moving Average) aligns as interim resistance before 1.1100 (psychological level, static level) and 1.1140 (December 28 high).
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.