- EUR/USD halts its two-day winning streak ahead of monetary decisions from both economies.
- Technical indicators suggest a potential revisit to the weekly low at 1.0741.
- A breakthrough above the 1.0800 level could lead the pair to reach the 14-day EMA at 1.0816.
EUR/USD halts to continue a two-day winning streak ahead of the monetary policy decisions from the United States (US) and the Eurozone on Wednesday and Thursday, respectively. The EUR/USD pair trades lower around 1.0790 during the Asian session on Wednesday.
The technical signals for the EUR/USD pair favor the ongoing downward movement. With the 14-day Relative Strength Index (RSI) staying below the 50 mark, there's a bearish sentiment suggesting a potential revisit to the major support at the 1.0750 level before the weekly low at 1.0741.
If the pair manages to break below the latter, it could put pressure on the EUR/USD pair to navigate the four-week low at the 1.0723 level followed by the psychological support region around the 1.0700 level.
Additionally, the Moving Average Convergence Divergence (MACD) suggests the weakening of the overall positive momentum as the MACD line is positioned above the centerline but exhibits divergence below the signal line. This shows a potential shift in the direction of the trend.
On the upside, the EUR/USD pair could find a key resistance around the psychological region at the 1.0800 level. A breakthrough above the barrier could reinforce the strength of the EUR/USD pair to explore the area around the 14-day Exponential Moving Average (EMA) at 1.0816 followed by the 38.2% Fibonacci retracement at 1.0833. If the EUR/USD pair surpasses these levels, the major level at 1.0850 could be tested as a further barrier.
EUR/USD: Daily Chart
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 consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.