EUR/USD Current Price: 1.1052

  • EU Commission downgraded the Union’s growth forecasts for this year and the next.
  • USD demand resurged amid Wall-Street hitting fresh all-time highs.
  • EUR/USD to fall further on a break below next Fibonacci support at 1.1030.

The EUR/USD pair fell to a fresh three-week low of 1.1035 as risk-appetite was combined with negative news coming from the Union. The European Commission decided to downgrade its growth forecasts for this year and the next, indicating that  “the external environment has become much less supportive and uncertainty is running high.” The news fueled the decline of the pair, as the dollar was already enjoying some substantial demand on the back of risk appetite. This last came after the Chinese Commerce Ministry said that the country has agreed with the US to cancel existing tariffs in different phases if a trade deal is reached.

Germany released September Industrial Production, which came in worse than expected, down by 0.6% in the month and by 4.3% when compared to a year earlier. The US, on the other hand, released just minor data, Initial Jobless Claims for the week ended November 1, which came in at  211K, beating the market’s expectations.

This Friday, Germany will release the September Trade Balance, seen posting a surplus of €18.1B, while the US will release the preliminary estimate of the November Michigan Consumer Sentiment Index, foreseen at 95.9 from the previous 95.5.

EUR/USD short-term technical outlook

The EUR/USD pair has broken below the 38.2% retracement of its October rally at around 1.1060, accelerating its decline afterwards. In the 4 hours chart, the price is now developing below all of its moving averages, with the 20 SMA extending its decline below the 100 SMA. Technical indicators have recovered within negative levels, but remain near daily lows, indicating strong selling interest. The pair will likely accelerate its decline on a break below 1.1030, the 50% retracement of the mentioned rally.

Support levels: 1.1030 1.1000 1.0970

Resistance levels: 1.1065 1.1100 1.1145  

View Live Chart for the EUR/USD 

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives

GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.

GBP/USD News

EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales

EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.

EUR/USD News

USD/JPY clings to gains near session tops, around 108.70 post-US data

The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.

USD/JPY News

US Dollar Index challenges weekly lows near 98.00

The US Dollar Index (DXY), which gauges the buck vs. a bundle of its main rivals, is now accelerating the downside and threatens to test the key support at 98.00 the figure.

US Dollar Index News

Trump Impeachment: Markets will not like any replacement

The public phase of the impeachment hearings against President Donald Trump has kicked off, with the US public and parties divided more than ever. How does it affect markets?

Read more

Forex Majors

Cryptocurrencies

Signatures