• EUR/USD continued to edge higher after posting gains on Wednesday.
  • Investors await September inflation data from the US.
  • Buyers are likely to remain interested as long as the Euro holds above 1.0570-1.0580.

EUR/USD continued to stretch higher toward 1.0650 early Thursday after posting small daily gains on Wednesday. The near-term technical outlook suggests that the pair is close to turning overbought but investors could ignore this condition in case US inflation data come in softer than forecast.

Risk flows continued to dominate the financial markets mid-week and the US Dollar found it difficult to hold its ground. Additionally, dovish comments from Federal Reserve (Fed) officials triggered another leg lower in US Treasury bond yields and further weighed on the currency.

Euro price this week

The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the US Dollar.

  USD EUR GBP CAD AUD JPY NZD CHF
USD   -0.59% -0.76% -0.55% -0.72% -0.03% -0.57% -0.97%
EUR 0.57%   -0.17% 0.05% -0.14% 0.55% 0.01% -0.36%
GBP 0.75% 0.17%   0.21% 0.00% 0.71% 0.16% -0.20%
CAD 0.54% -0.04% -0.22%   -0.17% 0.50% -0.04% -0.41%
AUD 0.72% 0.17% 0.00% 0.22%   0.72% 0.16% -0.20%
JPY 0.03% -0.53% -0.72% -0.46% -0.74%   -0.59% -0.91%
NZD 0.59% 0.01% -0.16% 0.06% -0.16% 0.56%   -0.37%
CHF 0.93% 0.37% 0.20% 0.41% 0.21% 0.89% 0.33%  

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).

 

Early Thursday, US stock index futures trade in positive territory, pointing to an upbeat market mood.

In the second half of the day, September Consumer Price Index (CPI) data from the US will be watched closely by market participants. Investors expect the CPI and the Core CPI, which excludes volatile food and energy prices, to rise 0.3% on a monthly basis. 

According to the CME Group FedWatch Tool, markets are pricing in a 72% probability that the Fed will leave the policy rate unchanged this year. In case the monthly Core CPI comes in weaker than expected, dovish Fed bets could continue to drive the market action. In that scenario, US stocks could extend the weekly rally and the USD could further weaken. On the other hand, the USD could stage a correction on a strong Core CPI reading of 0.5% or above and cause EUR/USD to erase a large portion of its weekly gains.

EUR/USD Technical Analysis

The Relative Strength Index (RSI) indicator on the four-hour chart climbed to 70 early Thursday. In case the pair makes a technical correction, 1.0600 (psychological level, static level, ascending trend line) aligns as first support before the 1.0570-1.0580 area (Fibonacci 23.6% retracement, 20-period Simple Moving Average, 100-period SMA). A 4-hour close below the latter could discourage buyers and open the door for further losses toward 1.0540 (50-period SMA).

On the upside, immediate resistance is located at 1.0640 (Fibonacci 38.2% retracement of the latest downtrend) before 1.0670, where the 200-period Simple Moving Average (SMA) is located, and 1.0700 (Fibonacci 50% retracement, 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


Recommended Content

Editors’ Picks

EUR/USD remains pressured below 1.0800, US data eyed

EUR/USD remains pressured below 1.0800, US data eyed

EUR/USD is trading under pressure below 1.0800 in European trading on Friday. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Fed rate cut ahead of the US preliminary Consumer Sentiment data for November.

EUR/USD News
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD edges lower toward 1.2950 in the European session on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders look to BoE-speak, US data for fresh incentives. 

GBP/USD News
Gold price seems vulnerable while below $2,700 amid stronger USD, positive risk tone

Gold price seems vulnerable while below $2,700 amid stronger USD, positive risk tone

Gold price drops to the $2,680 area during the first half of the European session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.

Gold News
Bitcoin touches new all-time high near $77,000 following Fed rate cut

Bitcoin touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures