EUR/USD Current price: 1.1028
- Germany confirmed the August Harmonized Index of Consumer Prices at 2% YoY.
- Speculative interest awaits the United States Consumer Price Index.
- EUR/USD pressures the 1.1020 support area, aims to break below it.
The EUR/USD pair is pressured, trading near its daily low at 1.1027. The US Dollar trades with a weaker tone against other major rivals on Tuesday, but the Euro can not attract investors. The looming European Central Bank (ECB) monetary policy announcement undermines demand for the Euro, as the ECB is widely anticipated to trim interest on the three benchmark rates by 25 basis points (bps) each. The latest data coming from the Eurozone fueled concerns about a potential recession in the area, which was led by an economic setback in Germany. An interest rate cut was priced long ago, yet recent concerns add to the Euro's weakness.
The US Dollar, in the meantime, is in no better shape. Market players are waiting for an inflation update, as the country will release the August Consumer Price Index (CPI) on Wednesday. Price pressures are expected to have eased further in the month, although the index is still foreseen above the Federal Reserve (Fed) goal of around 2%.
Data-wise, Germany confirmed that the Harmonized Index of Consumer Prices (HICP) rose at an annualized pace of 2% in August. The United States (US) has a light macroeconomic calendar, as it published the NFIB Business Optimism Index, which contracted to 91.2 in August from 93.7 in July. Fed officials Michael Barr and Michelle Bowman are scheduled to speak after Wall Street’s opening, although no relevant comments about monetary policy are to be expected ahead of the Federal Open Market Committee (FOMC) meeting next week.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows the risk remains skewed to the downside as it develops below a now flat 20 Simple Moving Average, which provides dynamic resistance at around 1.1090. The 100 SMA is slowly advancing above the 200 SMA, both well below the current level, losing their bullish relevance. Finally, technical indicators head south with uneven strength but within negative levels, in line with another leg lower.
Technical readings in the 4-hour chart support a downward extension. The EUR/USD pair is developing below the 20 and 100 SMAs, with the shorter one gaining bearish strength. At the same time, technical indicators maintain firm downward slopes near oversold readings, supporting a break below 1.1020, the immediate support level.
Support levels: 1.1020 1.0975 1.0930
Resistance levels: 1.1090 1.1115 1.1150
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

Gold hovers around all-time highs near $3,250
Gold is holding steady near the $3,250 mark, fuelled by robust safe-haven demand, trade war concerns, and a softer-than-expected US inflation gauge. The US Dollar keeps trading with heavy losses around three-year lows.

EUR/USD retreats towards 1.1300 as Wall Street shrugs off trade war headlines
The EUR/USD pair retreated further from its recent multi-month peak at 1.1473 and trades around the 1.1300 mark. Wall Street manages to advance ahead of the weekly close, despite escalating tensions between Washington and Beijing and mounting fears of a US recession. Profit-taking ahead of the close also weighs on the pair.

GBP/USD trims gains, recedes to the 1.3050 zone
GBP/USD now gives away part of the earlier advance to fresh highs near 1.3150. Meanwhile, the US Dollar remains offered amid escalating China-US trade tensions, recession fears in the US, and softer-than-expected US Producer Price data.

Bitcoin, Ethereum, Dogecoin and Cardano stabilze – Why crypto is in limbo
Bitcoin, Ethereum, Dogecoin and Cardano stabilize on Friday as crypto market capitalization steadies around $2.69 trillion. Crypto traders are recovering from the swing in token prices and the Monday bloodbath.

Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.