EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Buy Entry: Consider buying above $1.09805 for potential gains toward $1.10356.
- RSI Alert: RSI at 74 signals overbought conditions; watch for potential pullbacks.
- Support at $1.0963: Key support level; a break below could trigger a deeper correction.
EUR/USD is trading at $1.10062, up slightly by 0.02%, as it hovers near its pivot point at $1.1010.
The pair has shown resilience, holding above key support levels, but it's facing strong resistance ahead. The daily chart indicates that the euro is testing crucial levels that could determine its next move.
Immediate support is found at $1.0963, with further support at $1.0946 and $1.0883. These levels are critical; if the euro slips below $1.0963, it could trigger a more significant decline.
On the upside, resistance is at $1.1043, followed by $1.1073 and $1.1105. A break above the pivot point at $1.1010 could signal a continuation of the recent bullish trend, potentially driving the price toward these higher targets.
The RSI is currently at 74, indicating that the pair is overbought and may be due for a pullback.
However, the 50-day Exponential Moving Average (EMA) at $1.0928 is trending upward, suggesting that the broader trend remains bullish.
This alignment of indicators supports a cautious approach, favoring buying opportunities above key levels while being mindful of the potential for a short-term correction.
For those looking to trade this pair, an entry above $1.09805 with a take profit target at $1.10356 could be strategic.
A stop-loss at $1.09461 would help protect against downside risk. The overall outlook suggests that while EUR/USD has the potential to climb higher, traders should be prepared for volatility as the pair tests these key levels.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.09805
Take Profit – 1.10356
Stop Loss – 1.09461
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$551/ -$344
Profit & Loss Per Mini Lot = +$55/ -$34
EUR/USD Price Analysis – Aug 14, 2024
Daily Price Outlook
During Wednesday's European trading session, the EUR/USD currency pair reclaimed a seven-month high, trading around 1.1023 level.
This upward momentum was driven by the Euro's strong performance against its major peers, as market participants anticipate further interest rate cuts from the European Central Bank (ECB).
The pair's strength was also supported by the subdued outlook for the US Dollar (USD) amid growing speculation of Federal Reserve rate cuts later this year.
EUR/USD Reaches Seven-Month High on ECB Rate Cut Expectations and Steady Eurozone Growth
The shared currency gained traction during European session, with the EUR/USD pair reaching its highest level in seven months. This surge was fueled by expectations that the ECB will continue its gradual policy-easing cycle, following its first rate cut in June.
Market sentiment has been bolstered by a Reuters poll, which showed that over 80% of respondents expect the ECB to cut rates two more times this year, once in September and again in December.
Meanwhile, the ECB's cautious approach to interest rate cuts stems from concerns about re-accelerating inflation, despite confidence that price pressures will return to the bank’s 2% target by 2025.
The central bank has refrained from committing to a predefined interest-rate cut trajectory, as aggressive expansionary policies could potentially reignite inflation.
On the economic front, Eurostat's revised estimates for Q2 Gross Domestic Product (GDP) confirmed that the Eurozone economy expanded by 0.3%, in line with initial flash estimates and the growth rate recorded in the first quarter.
This steady economic performance further supports the Euro’s recent strength, contributing to the positive sentiment surrounding the EUR/USD pair.
As the ECB navigates its cautious rate-cutting path, the EUR/USD pair may experience volatility, especially as investors digest upcoming economic data and further ECB commentary.
Impact of Federal Reserve Rate Cut Expectations and US CPI Data on EUR/USD
On the US front, the EUR/USD pair continues to benefit from the weakening US Dollar, driven by speculation that the Federal Reserve will start reducing interest rates as early as September.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is hovering near a weekly low at 102.55, reflecting the market's anticipation of Fed rate cuts.
The US Producer Price Index (PPI) report for July, which showed softening price pressures, has reinforced expectations that the Fed might need to ease its monetary policy sooner rather than later.
The headline and core PPI both declined on a monthly and annual basis, suggesting that producers are losing pricing power amid weakening demand conditions.
Traders are now focusing on the upcoming US Consumer Price Index (CPI) data for July, scheduled for release at 12:30 GMT.
The CPI report is expected to show a 0.2% increase in both headline and core inflation on a monthly basis, with annual headline and core CPI projected to have decelerated to 2.9% and 3.2%, respectively.
However, the softer-than-expected CPI reading could further boost expectations for Fed rate cuts, potentially weakening the US Dollar and supporting the EUR/USD pair.
Conversely, if inflation numbers come in hotter than expected, it could dampen speculation of aggressive Fed rate cuts, which might exert downward pressure on the EUR/USD pair. Market participants will closely monitor the CPI data, as it will significantly influence the near-term direction of the EUR/USD pair.
EUR/USD- Technical Analysis
EUR/USD is trading at $1.10062, up slightly by 0.02%, as it hovers near its pivot point at $1.1010.
The pair has shown resilience, holding above key support levels, but it's facing strong resistance ahead. The daily chart indicates that the euro is testing crucial levels that could determine its next move.
Immediate support is found at $1.0963, with further support at $1.0946 and $1.0883. These levels are critical; if the euro slips below $1.0963, it could trigger a more significant decline.
On the upside, resistance is at $1.1043, followed by $1.1073 and $1.1105. A break above the pivot point at $1.1010 could signal a continuation of the recent bullish trend, potentially driving the price toward these higher targets.
The RSI is currently at 74, indicating that the pair is overbought and may be due for a pullback.
However, the 50-day Exponential Moving Average (EMA) at $1.0928 is trending upward, suggesting that the broader trend remains bullish.
This alignment of indicators supports a cautious approach, favoring buying opportunities above key levels while being mindful of the potential for a short-term correction.
For those looking to trade this pair, an entry above $1.09805 with a take profit target at $1.10356 could be strategic.
A stop-loss at $1.09461 would help protect against downside risk. The overall outlook suggests that while EUR/USD has the potential to climb higher, traders should be prepared for volatility as the pair tests these key levels.
Related News
- GBP/USD Price Analysis – Aug 14, 2024
EUR/USD Price Analysis – Aug 12, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair maintained its upward trend and remained well-bid around 1.0924, reaching an intra-day high of 1.0930.
This rally is largely due to a weaker US dollar, which lost ground amid rising expectations that the Federal Reserve (Fed) will cut interest rates at its next meeting.
Meanwhile, upbeat Eurozone economic growth of 0.3% also supports the EUR currency.
However, the Employment Change, a percentage measure indicating the increase in fresh payrolls, is expected to rise at a slower pace of 0.2% compared to the prior release of 0.3%, which may temper some of the positive sentiment.
Investors are waiting for key US inflation data before making significant moves on silver. This week’s reports include the Producer Price Index (PPI) on Tuesday, the Consumer Price Index (CPI) on Wednesday, and Retail Sales on Thursday.
In the Eurozone, revised Q2 GDP and preliminary Employment Change data will also be released on Wednesday.
These reports will influence Federal Reserve policy expectations, impacting the US dollar and, consequently, EUR/USD pair.
Impact of Eurozone Economic Growth and ECB Policy on EUR/USD
On the EUR front, the Eurozone's economy grew by 0.3% this quarter, matching earlier estimates and the previous quarter's growth. However, Employment Change is expected to slow to 0.2% from 0.3%, suggesting a more modest rise in new jobs.
Despite this, strong GDP figures are positive for the Euro (EUR) as they reduce the probability of further interest rate cuts by the European Central Bank (ECB).
Meanwhile, the ECB has shifted towards normalizing its policies, and investors are keen to see how much further the central bank will lower borrowing rates. Financial markets anticipate two more rate cuts this year.
Recently, Finnish ECB policymaker Olli Rehn highlighted that rate cuts could boost the Eurozone's economy, especially by supporting industrial growth and investment.
Consequently, the positive GDP growth and the expectation of fewer ECB rate cuts are likely to support the shared currency, strengthening the EUR/USD pair.
However, the slower Employment Change might limit gains, causing cautious trading around the EUR/USD.
Impact of Anticipated Fed Rate Cuts and CPI Data on EUR/USD
On the US front, traders are increasingly anticipating a Federal Reserve (Fed) rate cut at the next meeting, which could be beneficial for the EUR/USD pair.
However, the lower interest rates typically weaken the US dollar, making the EUR/USD pair more appealing.
According to the CME FedWatch Tool, there is a near-even chance of a rate cut, with a 49.5% probability of a 0.25% reduction and a 50.5% chance of a 0.50% cut in September.
On the data front, the Consumer Price Index (CPI) for July, due for release on Wednesday, is expected to show a 0.2% increase for both headline and core inflation, following a 0.1% decline in June.
The Producer Price Index (PPI), set for release on Tuesday, is forecast to rise by 0.1% in July, compared to a 0.2% gain in June.
If CPI exceeds expectations, it could impact the Federal Reserve's plans for rate cuts, potentially strengthening the USD and applying downward pressure on the EUR/USD pair.
Therefore, the Fed rate cuts could weaken the USD, making the EUR/USD pair more attractive. However, if CPI data exceeds expectations, it may lead to a stronger US dollar, exerting downward pressure on the EUR/USD pair.
EUR/USD - Technical Analysis
The EUR/USD is currently trading at $1.09204, showing a slight decline of 0.01% as the market remains cautious.
On the 4-hour chart, the pair is moving just below the pivot point at $1.0956, reflecting a neutral to bearish sentiment in the near term.
Immediate resistance is located at $1.0955, with further resistance levels at $1.1010 and $1.1043. These levels could act as targets if the euro gains momentum.
On the downside, immediate support is seen at $1.0867, with subsequent support at $1.0828 and $1.0777, which could be tested if the selling pressure increases.
The 50-day Exponential Moving Average (EMA) is positioned at $1.0891, slightly below the current price, indicating that the pair might find support around this level.
The Relative Strength Index (RSI) is currently at 53, suggesting a neutral stance, with neither overbought nor oversold conditions prevailing.
This RSI reading leaves room for potential upward movement, especially if the euro can maintain its position above the 50 EMA.
Given the current technical setup, a buy limit order at $1.08935 could be a strategic entry point, aiming for a take-profit target at $1.09557. To manage downside risk, a stop-loss should be placed at $1.08653.
Related News
GBP/USD Price Analysis – Aug 12, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD trades at $1.09204, just below the pivot point of $1.0956, indicating caution.
- 50-day EMA at $1.0891 provides support; RSI at 53 reflects a neutral market outlook.
- Buy limit at $1.08935 with a target of $1.09557; stop-loss set at $1.08653 to mitigate risk.
The EUR/USD is currently trading at $1.09204, showing a slight decline of 0.01% as the market remains cautious.
On the 4-hour chart, the pair is moving just below the pivot point at $1.0956, reflecting a neutral to bearish sentiment in the near term. Immediate resistance is located at $1.0955, with further resistance levels at $1.1010 and $1.1043.
These levels could act as targets if the euro gains momentum. On the downside, immediate support is seen at $1.0867, with subsequent support at $1.0828 and $1.0777, which could be tested if the selling pressure increases.
The 50-day Exponential Moving Average (EMA) is positioned at $1.0891, slightly below the current price, indicating that the pair might find support around this level.
The Relative Strength Index (RSI) is currently at 53, suggesting a neutral stance, with neither overbought nor oversold conditions prevailing.
This RSI reading leaves room for potential upward movement, especially if the euro can maintain its position above the 50 EMA.
Given the current technical setup, a buy limit order at $1.08935 could be a strategic entry point, aiming for a take-profit target at $1.09557. To manage downside risk, a stop-loss should be placed at $1.08653.
EUR/USD - Trade Ideas
Entry Price – Buy Limit 1.08935
Take Profit – 1.09557
Stop Loss – 1.08653
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$622/ -$282
Profit & Loss Per Mini Lot = +$62/ -$28
EUR/USD Price Analysis – Aug 09, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair failed to break its consolidating phase and remained sideways around the 1.0917 level, consolidating within the range of 1.0911 - 1.0929. However, the ECB is expected to deliver two more rate cuts this year.
This stance undermined the shared currency and contributed to the EUR/USD pair's subdued trend.
On the other hand, expectations for Federal Reserve rate cuts increased significantly following the weak US Nonfarm Payrolls (NFP) report for July, raising concerns about a potential recession.
However, these recession fears were tempered by lower-than-expected Initial Jobless Claims for the week ending August 2, which weakened the US dollar and may limit further losses in the EUR/USD pair.
Impact of Mixed Fed Rate Cut Expectations and Jobless Claims on EUR/USD
On the US front, the US Dollar Index (DXY) is trading around 103.00 after retreating from a high of 103.50.
This shift comes amid growing expectations for Federal Reserve rate cuts, spurred by a weak Nonfarm Payrolls (NFP) report for July, which heightened recession fears and triggered a global equity sell-off.
However, recent data on Initial Jobless Claims for the week ending August 2, which showed 233K claims versus the 240K estimate, suggests the labor market may be stronger than anticipated. This could provide support for the dollar.
Gennadiy Goldberg from TD Securities highlighted that the jobless claims data is positive, indicating that the labor market remains relatively strong despite the weaker payroll report.
According to the CME FedWatch tool, investors are now less certain about the size of potential Fed rate cuts in September, with a 54.5% chance of a 50 basis point cut, down from 74% a week earlier.
Therefore, the US Dollar Index’s pullback and mixed Fed rate cut expectations may lead to a modest rise in EUR/USD, as weaker dollar sentiment offsets potential support from positive jobless claims data.
Impact of ECB Rate Cut Expectations and Cautious Inflation Targets on EUR/USD
Conversely, the ECB is anticipated to implement two more rate cuts this year in response to the struggling Eurozone economy and its aim to achieve the 2% inflation target.
Despite this, ECB officials remain cautious and are not committing to a specific rate-cut schedule, acknowledging the challenging path to reaching their inflation goal.
Finnish ECB policymaker Olli Rehn emphasized that while inflation is easing, attaining the 2% target will be difficult.
He suggested that rate cuts could support the Eurozone’s fragile industrial sector and stimulate investment.
Rehn's remarks underscore the ECB's cautious stance and its focus on providing economic support amid uncertain conditions.
Hence, the expectations of further ECB rate cuts and a cautious approach to inflation could weaken the euro. This may lead to a rise in EUR/USD if the dollar remains under pressure from mixed Fed rate cut expectations and economic uncertainty.
EUR/USD - Technical Analysis
The EUR/USD pair is trading at $1.09202, up a modest 0.05% on the day, reflecting a cautious market sentiment.
The 4-hour chart suggests the pair is struggling to find clear direction, with the price hovering below the pivot point at $1.0956.
The Relative Strength Index (RSI) stands at 52, indicating a neutral market tone where neither the bulls nor bears have a clear advantage.
Immediate resistance is pegged at $1.0955, just below the pivot point. A break above this level could open the door for further gains, with the next resistance levels at $1.1010 and $1.1043.
These are crucial for the pair, as overcoming them could signal a shift towards a more sustained bullish trend.
The 50-day Exponential Moving Average (EMA), currently at $1.0881, serves as a key support, reinforcing the broader upward bias as long as the price remains above this level.
On the downside, immediate support lies at $1.0867, with further support at $1.0828 and $1.0777.
A breach of these levels could indicate a potential reversal in the current trend, inviting bearish momentum into the market.
Given the mixed technical signals, a strategic approach might involve entering a buy position near $1.08935, with a take profit target set at $1.09557 and a stop loss at $1.08653.
This setup offers a balanced risk-reward ratio while capitalizing on the potential for a near-term recovery.
Related News
S&P500 (SPX) Price Analysis – Aug 09, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD trades at $1.09202, with resistance at $1.0955 and support at $1.0867.
- RSI at 52 indicates a neutral stance, with potential for upward or downward movement.
- Buy limit at $1.08935 targeting $1.09557, with a stop loss at $1.08653.
The EUR/USD pair is trading at $1.09202, up a modest 0.05% on the day, reflecting a cautious market sentiment.
The 4-hour chart suggests the pair is struggling to find clear direction, with the price hovering below the pivot point at $1.0956.
The Relative Strength Index (RSI) stands at 52, indicating a neutral market tone where neither the bulls nor bears have a clear advantage.
Immediate resistance is pegged at $1.0955, just below the pivot point. A break above this level could open the door for further gains, with the next resistance levels at $1.1010 and $1.1043.
These are crucial for the pair, as overcoming them could signal a shift towards a more sustained bullish trend.
The 50-day Exponential Moving Average (EMA), currently at $1.0881, serves as a key support, reinforcing the broader upward bias as long as the price remains above this level.
On the downside, immediate support lies at $1.0867, with further support at $1.0828 and $1.0777.
A breach of these levels could indicate a potential reversal in the current trend, inviting bearish momentum into the market.
Given the mixed technical signals, a strategic approach might involve entering a buy position near $1.08935, with a take profit target set at $1.09557 and a stop loss at $1.08653.
This setup offers a balanced risk-reward ratio while capitalizing on the potential for a near-term recovery.
EUR/USD - Trade Ideas
Entry Price – Buy Limit 1.08935
Take Profit – 1.09557
Stop Loss – 1.08653
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$622/ -$282
Profit & Loss Per Mini Lot = +$62/ -$28
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD trades at $1.09189, below the pivot point of $1.0956, reflecting caution.
- RSI at 54 indicates a neutral stance, with potential for directional shifts.
- Buy at $1.08935, target $1.09557; stop-loss set at $1.08653 for risk management.
The EUR/USD pair is currently trading at $1.09189, marking a 0.14% decline as the market remains cautious amidst mixed economic signals.
The pivot point for today is set at $1.0956, acting as a critical threshold that could determine the currency pair's short-term direction.
Immediate resistance is identified at $1.0955, with further resistance levels at $1.1010 and $1.1043. Overcoming these barriers could signal a potential shift in momentum toward a bullish trend.
On the downside, immediate support is seen at $1.0867, followed by additional support levels at $1.0828 and $1.0777.
The Relative Strength Index (RSI) is positioned at 54, indicating a neutral stance in terms of market momentum, as it sits in the middle of the scale.
The 50-day Exponential Moving Average (EMA) is at $1.0863, suggesting that the market is maintaining a slight bullish bias as long as the price remains above this indicator.
The recommended strategy for traders is to consider entering a long position with a buy limit at $1.08935, targeting a take-profit at $1.09557 while setting a stop-loss at $1.08653 to manage risk.
EUR/USD - Trade Ideas
Entry Price – Buy Limit 1.08935
Take Profit – 1.09557
Stop Loss – 1.08653
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$622/ -$282
Profit & Loss Per Mini Lot = +$62/ -$28
EUR/USD Price Analysis – Aug 07, 2024
Daily Price Outlook
During the European trading session on Wednesday, the EUR/USD currency pair failed to halt its downward trend and remained offered around the 1.0918 level, hitting an intra-day low of 1.0905.
This decline can be attributed to the European Central Bank's (ECB) downbeat view of the Eurozone's economic prospects, which continues to undermine the shared currency and exert downward pressure on the EUR/USD pair.
Conversely, rising expectations of a 50-basis point rate cut by the Fed in September have weakened the US dollar, helping to limit deeper losses in the EUR/USD pair.
The CME FedWatch tool indicates a 67.5% chance of a 50-basis point Fed rate cut in September, up from 13.2% last week.
US Dollar Weakens on Rate Cut Expectations, EUR/USD Limits Losses
On the US front, the broad-based US dollar struggled to sustain its bullish momentum and edged lower as expectations of a more aggressive rate cut in September increased.
This shift followed weaker US employment data for July, which heightened concerns about a potential recession.
The CME FedWatch tool now indicates a 67.5% probability of a 50-basis point interest rate cut by the Federal Reserve in September, a significant rise from 13.2% a week earlier.
According to Reuters, Federal Reserve Bank of San Francisco President Mary Daly indicated that risks to the Fed's mandates are becoming more balanced, suggesting a potential openness to cutting rates in future meetings.
Additionally, Chicago Fed President Austan Goolsbee mentioned that the central bank is ready to take action if economic or financial conditions deteriorate.
Therefore, the US dollar's decline due to increased rate cut expectations and weaker employment data has exerted upward pressure on the EUR/USD pair. The anticipated Fed rate cut and dovish Fed signals contribute to a more favorable environment for the euro.
Euro Faces Pressure as ECB Remains Cautious, but German Data Provides Support
On the EUR front, the shared currency is under pressure against the USD due to the European Central Bank's (ECB) gloomy outlook on the Eurozone economy.
However, strong economic data from Germany is providing some support. Recent figures from Destatis show that Germany’s industrial sector grew by 1.4% in June, exceeding expectations of a 1.0% increase and recovering from a 2.5% decline in May.
This growth in Germany, the Eurozone’s largest economy, helps stabilize the euro and mitigate further losses.
EUR/USD - Technical Analysis
The EUR/USD pair is currently trading at $1.09189, marking a 0.14% decline as the market remains cautious amidst mixed economic signals.
The pivot point for today is set at $1.0956, acting as a critical threshold that could determine the currency pair's short-term direction.
Immediate resistance is identified at $1.0955, with further resistance levels at $1.1010 and $1.1043. Overcoming these barriers could signal a potential shift in momentum toward a bullish trend.
On the downside, immediate support is seen at $1.0867, followed by additional support levels at $1.0828 and $1.0777.
The Relative Strength Index (RSI) is positioned at 54, indicating a neutral stance in terms of market momentum, as it sits in the middle of the scale.
The 50-day Exponential Moving Average (EMA) is at $1.0863, suggesting that the market is maintaining a slight bullish bias as long as the price remains above this indicator.
The recommended strategy for traders is to consider entering a long position with a buy limit at $1.08935, targeting a take-profit at $1.09557 while setting a stop-loss at $1.08653 to manage risk.
Related News
GBP/USD Price Analysis – Aug 07, 2024
EUR/USD Price Analysis – Aug 05, 2024
Daily Price Outlook
During the European trading session, the EUR/USD currency pair gained bullish momentum and remained well-supported around the 1.0945 level despite disappointing Eurozone data.
This upward trend can be attributed to the weakening US dollar, which lost strength due to dovish sentiment surrounding the Federal Reserve’s policy stance.
Although the downbeat Eurozone data contributed to limiting further gains in the EUR/USD pair, the overall bearish outlook on the US dollar played a crucial role in driving the currency’s rise.
Looking ahead, traders will closely monitor the US ISM Services Purchasing Managers Index (PMI). Expected to rise to 51.0 in July from 48.8 in June, the PMI could significantly influence the market. A stronger-than-anticipated PMI might bolster the USD and potentially limit gains in other assets.
Impact of Weak US Labor Market and Dovish Fed Outlook on EUR/USD
On the US front, the US dollar struggled to gain traction and edged lower due to the Federal Reserve's dovish stance and weak employment data. Traders anticipate a 50-basis point rate cut in September and over 100 basis points in total this year, according to the CME FedWatch tool.
These expectations stem from disappointing US economic data, which suggest a slowdown and raise concerns about the possibility of a "soft landing" for the economy.
Meanwhile, the labor market is weakening, and the manufacturing sector is experiencing a sharp slowdown.
The July Nonfarm Payrolls report revealed a decline in labor demand and a rise in unemployment to its highest level since November 2021. This deterioration heightens the likelihood of rate cuts.
On the data front, US Nonfarm Payrolls increased by 114,000 in July, falling short of the 175,000 expected and down from 179,000 in June. The unemployment rate rose to 4.3%, the highest since November 2021, and Average Hourly Earnings grew by just 0.2%, below the 0.3% forecast.
Therefore, the weakening US labor market and lower-than-expected Nonfarm Payrolls may boost the EUR/USD pair, as dovish Fed expectations could weaken the USD and enhance the euro's appeal.
Impact of Eurozone Economic and Geopolitical Uncertainty on EUR/USD
On the Eurozone front, higher preliminary Harmonized Index of Consumer Prices (HICP) for July has cast doubt on potential European Central Bank (ECB) rate cuts in September. The Eurozone Sentix Investor Confidence Index dropped sharply from -7.3 in July to -13.9 in August, reflecting growing concerns.
In the meantime, the Expectations Index also fell from 1.5 in July to -8.8 in August. Sentix attributed these declines to worries about the fragile geopolitical situation, including issues in the Middle East, upcoming German state elections, and uncertainty surrounding the US presidential election later this year.
Therefore, the uncertainty over ECB rate cuts and declining Eurozone investor confidence could weigh on the EUR/USD pair, as concerns about economic and geopolitical instability may undermine the euro's strength.
EUR/USD - Technical Analysis
The EUR/USD pair is trading at $1.09566, showing a modest decline of 0.09% as investors react to mixed economic signals from both sides of the Atlantic.
The pair has recently navigated a challenging environment, with traders keeping a close eye on technical levels for clues about its next move.
The 4-hour chart reveals that EUR/USD is slightly above its pivot point of $1.0946, indicating a potential bullish outlook if it maintains support above this level.
Immediate resistance is observed at $1.0988, which could act as a hurdle for any upward movement. If the pair manages to break through this resistance, it may target further gains at $1.1022 and $1.1048.
On the downside, immediate support is positioned at $1.0892, with additional support levels at $1.0858 and $1.0822. Traders should monitor these support levels closely, as a breach could signal further bearish momentum.
The Relative Strength Index (RSI) stands at 73, indicating that the EUR/USD is currently in overbought territory. This suggests a possible correction could be on the horizon if the buying pressure eases.
Meanwhile, the 50-day Exponential Moving Average (EMA) is situated at $1.0852, offering dynamic support that aligns with the bullish sentiment observed in recent sessions.
Given the current technical setup, traders might consider buying EUR/USD above the entry price of $1.09457, aiming for a potential upside toward the target of $1.10107. To manage risk, a stop-loss should be placed at $1.08909.
Related News
GBP/USD Price Analysis – Aug 05, 2024
EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- EUR/USD faces immediate resistance at $1.0988, with support at $1.0892.
- RSI at 73 indicates overbought conditions, suggesting potential for a pullback.
- The 50-day EMA at $1.0852 provides dynamic support for the current bullish trend.
The EUR/USD pair is trading at $1.09566, showing a modest decline of 0.09% as investors react to mixed economic signals from both sides of the Atlantic.
The pair has recently navigated a challenging environment, with traders keeping a close eye on technical levels for clues about its next move.
The 4-hour chart reveals that EUR/USD is slightly above its pivot point of $1.0946, indicating a potential bullish outlook if it maintains support above this level.
Immediate resistance is observed at $1.0988, which could act as a hurdle for any upward movement. If the pair manages to break through this resistance, it may target further gains at $1.1022 and $1.1048.
On the downside, immediate support is positioned at $1.0892, with additional support levels at $1.0858 and $1.0822. Traders should monitor these support levels closely, as a breach could signal further bearish momentum.
The Relative Strength Index (RSI) stands at 73, indicating that the EUR/USD is currently in overbought territory. This suggests a possible correction could be on the horizon if the buying pressure eases.
Meanwhile, the 50-day Exponential Moving Average (EMA) is situated at $1.0852, offering dynamic support that aligns with the bullish sentiment observed in recent sessions.
Given the current technical setup, traders might consider buying EUR/USD above the entry price of $1.09457, aiming for a potential upside toward the target of $1.10107. To manage risk, a stop-loss should be placed at $1.08909.
EUR/USD - Trade Ideas
Entry Price – Buy Above 1.09457
Take Profit – 1.10107
Stop Loss – 1.08909
Risk to Reward – 1: 1.19
Profit & Loss Per Standard Lot = +$650/ -$548
Profit & Loss Per Mini Lot = +$65/ -$54