EUR/USD Forecast: Policymakers awaited for directional clues

EUR/USD Current Price: 1.0691

• Federal Reserve Chairman Powell and European Central Bank President Lagarde stand out in the American session.
• Hopes that interest rates have peaked or are about to maintain financial markets cautiously optimistic.
• EUR/USD trades with a soft tone within familiar levels, near-term risk skews to the downside.

The EUR/USD pair maintains the sour tone on Thursday but trades within familiar levels, now changing hands in the 1.0690 price zone. Financial markets are cautiously optimistic but so far lacked a fresh catalyst as the macroeconomic calendar has remained scarce. Nevertheless, speculative interest is hopeful rates have peaked or are about to, helping local economies dodge a steep economic setback.

Stock markets trade mixed, although most major indexes remain stuck around their opening levels. At the same time, government bond yield pivot within regular levels, stabilizing after some wild moves in the previous weeks and far from the multi-decade peaks posted in October, reinforcing the positive mood.    

The Euro Zone did not release relevant data on the day, but the macroeconomic calendar will become more busy during American trading hours. The United States (US) will publish Initial Jobless Claims for the week ended November 3, but Federal Reserve (Fed) policymakers will steal the show. Several officials will hit the wires, with Chairman Jerome Powell due to participate in a panel discussion titled "Monetary Challenges in a Global Economy." Additionally, European Central Bank (ECB) President Christine Lagarde is due to speak at the inauguration of the House of the Euro in Brussels.

EUR/USD short-term technical outlook

The EUR/USD pair met sellers around at 1.0715 for a second consecutive day, with a modest bearish bias in its daily chart. The pair keeps hovering midway between a bullish 20 Simple Moving Average (SMA), currently at around 1.0610, and the 100 and 200 SMAs converging around 1.0800. Technical indicators, in the meantime, gain downward traction but hold well above their midlines, limiting the odds or a steeper slide.

Bears are in control in the near term. The 4-hour chart shows that the pair battled with a bearish 20 SMA, ending up sliding below it, as technical indicators eased around neutral levels with moderated bearish strength. Finally, a mildly bullish 100 SMA loses upward momentum at around 1.0600, the region to pierce for a steeper slide.

Support levels: 1.0655 1.0620 1.0590

Resistance levels: 1.0710 1.0760 1.0800

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