EUR/USD Price Forecast: Selling pressure mounts ahead of US employment data, Fed speakers

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0510

Investors await a slew of United States employment data and Fed speakers.
A better market mood weighed on the US Dollar throughout the first half of the day.
EUR/USD gains downward traction in the near term, could reach fresh weekly lows.

A better market mood helped EUR/USD recover the 1.0500 threshold on Tuesday, with the pair hitting an intraday high of 1.0530 during European trading hours amid the broad US Dollar’s weakness. Still, EUR/USD remains within familiar level and has no easy way up.

The better tone of Asian and European indexes underpinned the high-yielding Euro ahead of United States (US) data and a slew of Federal Reserve (Fed) speeches, including Chairman Jerome Powell. The US will release after Wall Street’s opening the October JOLTS Job Openings report, the first of several employment-related reports the country will release ahead of the Nonfarm Payrolls one on Friday.

Fed officials, in the meantime, will hit the wires throughout the American afternoon, with Chair Powell set to participate in a moderated discussion on Wednesday. Policymakers’ words will be closely scrutinized as they will soon enter the blackout period ahead of the last monetary policy meeting of 2024. Other than that, the macroeconomic calendar has nothing relevant to offer.

EUR/USD short-term technical outlook

The EUR/USD pair hovers around 1.0510, and the daily chart shows the upside is well-limited. The 20 Simple Moving Average (SMA) maintains a firmly bearish slope, providing dynamic resistance at 1.0570. The 100 and 200 SMAs, in the meantime, stand far above the shorter one, slowly grinding south. Finally, technical indicators remain within negative levels with limited upward strength, suggesting bears are taking the lead.

In the near term, according to the 4-hour chart, the risk clearly skews to the downside. A bearish 20 SMA caps advances while developing below also bearish 100 and 200 SMAs. At the same time, technical indicators turned marginally lower within negative levels, in line with mounting selling interest.

Support levels: 1.0465 1.0420 1.0370

Resistance levels: 1.0570 1.0625 1.0660

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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.

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