- EUR/USD stabilized above 1.0550 in the European session on Wednesday.
- Improving risk mood could help the Euro erase a part of its weekly losses.
- ECB board member Elderson said that the policy rate could go higher if necessary.
EUR/USD stabilized above 1.0550 early Wednesday after posting small daily losses on Tuesday. The modest improvement seen in risk mood could help the pair stage a technical correction mid-week, given the oversold conditions.
On Tuesday, the US Dollar (USD) continued to find demand as a safe haven while the sell-off in US stock markets continued. The disappointing data releases from the US, however, limited the USD's gains and allowed the pair to find support. Consumer confidence continued to weaken in September and New Home Sales declined by 8.7% in August.
Euro price this week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.83% | 0.76% | 0.29% | 0.93% | 0.43% | 0.24% | 1.03% | |
| EUR | -0.83% | -0.08% | -0.52% | 0.09% | -0.41% | -0.59% | 0.21% | |
| GBP | -0.76% | 0.08% | -0.45% | 0.17% | -0.31% | -0.50% | 0.29% | |
| CAD | -0.32% | 0.51% | 0.45% | 0.62% | 0.13% | -0.07% | 0.73% | |
| AUD | -0.91% | -0.08% | -0.16% | -0.62% | -0.50% | -0.66% | 0.11% | |
| JPY | -0.43% | 0.42% | 0.35% | -0.13% | 0.53% | -0.18% | 0.62% | |
| NZD | -0.27% | 0.58% | 0.50% | 0.06% | 0.67% | 0.17% | 0.78% | |
| CHF | -1.04% | -0.20% | -0.27% | -0.73% | -0.07% | -0.60% | -0.79% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Later in the day, Durable Goods Orders data from the US will be looked upon for fresh impetus. Investors will also pay close attention to the risk perception. At the time of press, US stock index futures were up between 0.3% and 0.5%. In case Wall Street's main indexes open in positive territory on hopes of the US avoiding a government shutdown, the USD could start losing strength against its rivals.
In the meantime, European Central Bank (ECB) board member Frank Elderson told Market News International on Wednesday that interest rates could still go higher, if necessary.
EUR/USD Technical Analysis
EUR/USD was last seen trading near the lower limit of the descending regression channel and the Relative Strength Index (RSI) on the 4-hour chart was slightly below 30, pointing to oversold conditions. In case the pair stages a technica correction, 1.0600 (psychological level, 20-period Simple Moving Average (SMA), mid-point of the descending channel) could be seen as the first resistance before 1.0630 (upper limit of the descending channel, static level) and 1.0650 (50-period SMA).
On the downside, 1.0550 (lower limit of the descending channel) aligns as immediate support ahead of 1.0520 (static level from January) and 1.0500 (psychological level).
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 back, trades above 1.0860
EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close, approaches 1.2700
GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell.
Gold resumes advance and approaches record highs
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Solana likely to extend gains as DeFi airdrop season could boost user base
Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside
TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.