EUR/USD Current price: 1.1046
- Fears of a Eurozone recession weighed on the Euro.
- US inflation and ECB’s monetary policy coming up this week.
- EUR/USD under selling pressure, critical support at 1.1020.
The EUR/USD pair eased towards 1.1035 during European trading hours, as the Euro got hit by poor local data fueling concerns about the Eurozone’s economic performance. At the same time, the US Dollar remained resilient amid caution ahead of first-tier events scheduled for later this week.
The EU released September Sentix Investor Confidence, which fell for a third consecutive month, printing at -15.4. The accompanying report showed the economy is on the brink of a recession and that the poor performance of the German economy plays a major role in this. The United States (US) macroeconomic calendar will remain light on Monday, as the country will release July Wholesale Inventories and Consumer Credit Change for the same month.
However, the US will publish the August Consumer Price Index (CPI) on Wednesday, expected to have risen by 2.6% in the previous twelve months. Such a reading will be still above the Federal Reserve (Fed) goal of around 2%, but will be better than the 2.9% posted in July. Additionally, the European Central Bank (ECB) will announce its decision on monetary policy on Thursday. The ECB is widely anticipated to trim interest rates by 25 basis points (bps) after already delivering an interest rate cut. EU data released earlier today supports the case for a looser monetary policy amid the risk high rates imply to economic progress.
EUR/USD short-term technical outlook
The EUR/USD pair is sharply down for a second consecutive day, and technical readings in the daily chart show the slide may continue. The pair gapped lower at the opening and fell after filling the gap. A mildly bullish 20 Simple Moving Average (SMA) provides resistance at around 1.1090, while the 100 SMA slowly advances above the 200 SMA in the 1.0850 price zone. Nevertheless, technical indicators head firmly south, and the Momentum indicator has already crossed below its 100 level, in line with continued selling pressure.
In the near term, and according to the 4-hour chart, the risk skews to the downside. The pair has extended its slide below the 20 and 100 SMAs, with the shorter one slowly gaining downward traction. Technical indicators have stabilized as the pair bounced from the aforementioned intraday low, but remain within negative levels, without signs of downward exhaustion. An immediate support level comes at 1.1020, with a break below it likely resulting in another steep leg south.
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
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
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.