EUR/USD Price Forecast: Sellers put pressure on weekly lows

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0774

Concerns about looming US elections push market players into safe-haven US Dollar.
US Consumer Confidence expected to have improved modestly in October.
EUR/USD accelerates its slide after failing to reconquer the 1.0800 threshold.

The EUR/USD pair trades with a softer tone on Tuesday, breaking through the 1.0800 mark ahead of Wall Street’s opening. The US Dollar advances as caution intensifies ahead of first-tier releases and the United States (US) presidential election, scheduled for next week. Concerns revolve around a potential victory from former President Donald Trump and a drastic policy shift.

In the meantime, the US has quite a packed macroeconomic calendar this week, including fresh growth and inflation updates and multiple employment-related figures ahead of Friday's Nonfarm Payrolls (NFP) release.

So far, the country released the Goods Trade Balance, which posted an unexpected deficit of $108.2 billion in September, according to preliminary estimates. The reading was much worse than the $-96.1 billion expected. More relevant figures will come in the American session, as CB will release October Consumer Confidence, foreseen at 99.5, slightly better than the previous 98.7. The US will also publish JOLTS Job Openings.

EUR/USD short-term technical outlook

The EUR/USD pair approaches its weekly low, and technical readings in the daily chart support a downward extension. On the one hand, technical indicators have turned south within negative levels, reflecting increased selling interest. On the other, the 20 Simple Moving Average (SMA) has accelerated lower after crossing below a flat 100 SMA and approaching a directionless 200 SMA.

In the near term, and according to the 4-hour chart, the risk of a downward extension has increased. Technical indicators resumed their declines, heading lower almost vertically below their midlines. At the same time, the pair broke lower after battling around a flat 20 SMA. Finally, the longer moving averages maintain their downward slopes well above the shorter one, indicating that sellers are unwilling to give up.

Support levels: 1.0755 1.0710 1.0667

Resistance levels: 1.0820 1.0865 1.0900

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.