Daily Price Outlook

The EUR/USD currency pair is showing strong optimism as the Euro (EUR) continues its upward journey against the US Dollar. Thanks to encouraging US inflation numbers, the pair reached exciting new heights around 1.1065. This persistent positive sentiment, coupled with a growing appetite for risk, is playing a role in the Greenback's decline, which was seen as a key factor that kept the EUR/USD currency pair higher.

Driving Factors Behind EUR/USD Upward Momentum

However, the reason for its upward surge can be linked to recent progress in key economic indicators. The German Harmonized Index of Consumer Price (HICP) stood at 6.5%, in line with market expectations. Similarly, Eurozone Sentix Investor Confidence improved, rising from -22.5 in July to -18.9 in August, surpassing the expected -23.4.

It is worth noting, the European Central Bank is set to release the Economic Bulletin, a report that might offer insights into their monetary outlook for the year. These elements together shape the direction of the EUR/USD currency pair.

US Dollar's Trajectory and Inflation Influence on EUR/USD

Looking at the other side of things, the movements of the US dollar lately are influenced by what officials from the Federal Reserve (Fed) are talking about. It looks like they're moving away from raising interest rates and leaning more towards keeping them steady. For example, Philly Fed's Patrick Harker mentioned not changing rates, and Atlanta Fed's Raphael Bostic believes there's no need for more rate hikes.

But what really matters for people who invest is the US inflation numbers. If inflation stays low, the US dollar might become weaker, which could give a slight boost to the EUR/USD pair. In general, most investors think the Fed will keep the rates where they are now, while the European Central Bank (ECB) is working out how to tighten things up after the summer.

Influential US CPI and PPI Data Impact on EUR/USD

Looking ahead, our attention shifts to the upcoming US Consumer Price Index (CPI) report scheduled for Thursday. This data is really important because it helps the Federal Reserve (Fed) decide what to do with interest rates, which also affects the direction of EUR/USD. Predictions say that US inflation might go up a bit from 3% to 3.3%, and the core rate is expected to stay around 4.8%. These numbers are super important for investors, and they could guide how the EUR/USD currency pair moves based on what the Fed does and how people feel in the market.

EUR/USD - Technical Analysis

The EUR/USD pair has maintained a sideways and narrow trajectory since yesterday. It's worth noting that the EMA50 indicator continues to exert downward pressure on the price, thus sustaining the bearish trend scenario. The confirmation of this scenario hinges on the breach of the 1.0955 level, which would validate the extension of the bearish movement toward the 1.0880 level.

The presence of a double top pattern's negative influence enhances the likelihood of further anticipated declines in the forthcoming sessions. It's crucial to emphasize that the continuity of the bearish trend necessitates staying below the 1.1030 level.

For today, the projected trading range spans from the support level of 1.0900 to the resistance level of 1.1030.

Daily Price Outlook

The EUR/USD pair has maintained a sideways and narrow trajectory since yesterday. It's worth noting that the EMA50 indicator continues to exert downward pressure on the price, thus sustaining the bearish trend scenario. The confirmation of this scenario hinges on the breach of the 1.0955 level, which would validate the extension of the bearish movement toward the 1.0880 level.

The presence of a double top pattern's negative influence enhances the likelihood of further anticipated declines in the forthcoming sessions. It's crucial to emphasize that the continuity of the bearish trend necessitates staying below the 1.1030 level.

For today, the projected trading range spans from the support level of 1.0900 to the resistance level of 1.1030.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09770

Take Profit – 1.10380

Stop Loss – 1.09237

Risk to Reward – 1: 2.1

Profit & Loss Per Standard Lot = +$610/ -$533

Profit & Loss Per Micro Lot = +$61/ -$53

Daily Price Outlook

The EUR/USD pair made an effort to surpass the 1.0955 threshold but has commenced the day on a bullish note, influenced by the Stochastic indicator's positive outlook. Some interim gains are anticipated before the pair potentially resumes its downtrend.

The persistent downward pressure exerted by the EMA50 underscores the prevailing bearish correction trend, a sentiment further reinforced by the recently observed double top pattern on the chart.

In light of the current analysis, the bearish trajectory is projected to continue in the near term, with a key target pinpointed at 1.0880. It's imperative to note, however, that any breach above the 1.1030 level could negate this bearish forecast, redirecting the pair towards its primary bullish trajectory.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09445

Take Profit – 1.10403

Stop Loss – 1.08992

Risk to Reward – 1: 2.1

Profit & Loss Per Standard Lot = +$958/ -$453

Profit & Loss Per Micro Lot = +$95/ -$45

Daily Price Outlook

The EUR/USD pair is maintaining its upward trajectory above the 1.0942 level, with a neutral intraday bias at present. The persistence of resistance at 1.1148 suggests the potential for further decline. A support level is found at 1.0832 in case the pair drops below 1.0942.

EUR/USD Market Analysis: The Euro displays a recovery pattern within an adjacent triangle below 1.1000 amid concerns over Italy's tax policy.

During the early hours of Wednesday's European session, EUR/USD has managed to recover some of its weekly losses. Consequently, the currency pair finds itself within a symmetrical triangle formation that has persisted for two months. This uptick in sentiment can be attributed to positive news and data releases from China, contributing to a slight improvement in overall market sentiment.

The recent surge in market performance is bolstered by an increase in factory-gate inflation figures from China, offsetting concerns arising from a rise in consumer prices. Furthermore, Bloomberg's reference to the Biden Administration's optimistic news has provided a source of comfort for EUR/USD traders. According to the report, the US plans to specifically target Chinese companies that derive more than 50% of their revenue from industries like quantum computing and artificial intelligence (AI).

It's worth noting that unexpected tax implications for banks' windfall profits in Italy, coupled with global credit rating agencies downgrading US financial institutions, are influencing risk perception and consequently affecting the EUR/USD price. Apprehensions related to potential economic downturns in the UK and China's decelerating economic growth seem to resonate on a similar wavelength, adding complexity to the market outlook.

EUR/USD - Technical Analysis

The EUR/USD pair made an effort to surpass the 1.0955 threshold but has commenced the day on a bullish note, influenced by the Stochastic indicator's positive outlook. Some interim gains are anticipated before the pair potentially resumes its downtrend.

The persistent downward pressure exerted by the EMA50 underscores the prevailing bearish correction trend, a sentiment further reinforced by the recently observed double top pattern on the chart.

In light of the current analysis, the bearish trajectory is projected to continue in the near term, with a key target pinpointed at 1.0880. It's imperative to note, however, that any breach above the 1.1030 level could negate this bearish forecast, redirecting the pair towards its primary bullish trajectory.

Daily Price Outlook

The EUR/USD pair exhibited marginal upward shifts during the preceding evening, scrutinizing the resistance posed by the EMA50. As we initiate the current trading day, a revitalized bearish sentiment has manifested, characterized by a trajectory aimed at revisiting the 1.0955 level.

This tactical move is congruent with the ongoing preservation of the bearish trend scenario, which persists as a consequence of the observed completion of a double top pattern. This specific pattern instigated a deviation from the previously observed bullish trajectory, subsequently initiating a bearish correction with its ensuing target positioned at 1.0880.

Consequently, we anticipate the continuation of negative market dynamics in the forthcoming trading sessions. However, it is prudent to acknowledge that a breach of the 1.1030 level would serve to mitigate the prevailing downward pressure, potentially redirecting the price towards the primary bullish trend.

The anticipated trading range for the present day is projected to fluctuate within the boundaries of support at 1.0900 and resistance at 1.1040.

EUR/USD - Trade Idea

Entry Price – Buy Above 1.09791

Take Profit – 1.10993

Stop Loss – 1.09063

Risk to Reward – 1: 1.65

Profit & Loss Per Standard Lot = +$1202/ -$728

Profit & Loss Per Micro Lot = +$120/ -$72

Daily Price Outlook

The EUR/USD currency pair has been facing challenges as it struggles to rise above the 1.1000 level on Tuesday. Investors are worried about a possible recession in the area, which is putting pressure on the pair. However, the decline in EUR/USD currency pair was driven by a recent survey indicating that consumer inflation expectations for the upcoming 12 months dropped to 3.4% in June. Moreover, the strong US dollar was seen as another important factor that weakened the EUR/USD currency pair.

EUR/USD Pair Affected by Mixed Eurozone News and ECB Rate Speculation

According to the latest data, the Eurozone Sentix Investor Confidence showed a slight improvement, moving from -22.5 in July to -18.9 in August. This result was better than what experts had predicted at -23.4. However, it's important not to get too carried away with this positive change. Patrick Hussy from Sentix pointed out that the Eurozone economy is still stuck in a recession. This means we shouldn't think everything is great just because there was a small improvement.

Moreover, Germany's Industrial Production numbers for June dropped by -1.5% compared to expectations of -0.4%. This raised concern and impacted the EUR/USD pair's performance.

Eurozone's Inflation Worries Impact EUR/USD Pair

According to the European Central Bank's survey, people in the Eurozone were still worried about inflation in June. They thought prices would go up by 3.4% in the next year, which is lower than the 3.9% they predicted in May. Looking three years ahead, they expected inflation to be 2.3%, down from 2.5% in May. People also believed that their income wouldn't change much, but they expected to spend less. The outlook for economic growth in the next year got a little better, and expected unemployment in a year remained the same. As a result, the EUR/USD pair dropped to 1.0970, marking a 0.25% decrease.

US Dollar's Focus and Upcoming Economic Indicators for EUR/USD Direction

On the US front, people are paying attention to the US dollar because a Federal Reserve member, Michelle Bowman, said that increasing interest rates could help control inflation. This could make the US dollar stronger and limit gains in the EUR/USD pair.

Furthermore, people will be watching Germany's Consumer Price Index for July on Tuesday, and then the US Consumer Price Index on Thursday. These events will affect the US dollar and show where the EUR/USD pair might go.

EUR/USD - Technical Analysis

The EUR/USD pair exhibited marginal upward shifts during the preceding evening, scrutinizing the resistance posed by the EMA50. As we initiate the current trading day, a revitalized bearish sentiment has manifested, characterized by a trajectory aimed at revisiting the 1.0955 level.

This tactical move is congruent with the ongoing preservation of the bearish trend scenario, which persists as a consequence of the observed completion of a double top pattern. This specific pattern instigated a deviation from the previously observed bullish trajectory, subsequently initiating a bearish correction with its ensuing target positioned at 1.0880.

Consequently, we anticipate the continuation of negative market dynamics in the forthcoming trading sessions. However, it is prudent to acknowledge that a breach of the 1.1030 level would serve to mitigate the prevailing downward pressure, potentially redirecting the price towards the primary bullish trend.

The anticipated trading range for the present day is projected to fluctuate within the boundaries of support at 1.0900 and resistance at 1.1040.

Daily Price Outlook

The EURUSD pair's upward march was halted at the 1.1030 level, which corresponds to the disrupted neckline of the double top pattern, as depicted on the chart. It's noteworthy that the price has begun to display a bearish rebound from this juncture, indicating a potential return to the correctional bearish wave and setting negative targets down to 1.0880.

Hence, we anticipate further bearish propensity in the forthcoming trading sessions, reinforced by the clear negativity exhibited by the Stochastic Oscillator. However, it should be noted that a breach of the 1.1030 level could interrupt the projected decline and steer the price back to the primary bullish trend.

Today's expected trading range lies between the 1.0900 support and 1.1050 resistance levels.

The predicted market trend for today is bearish.

EUR/USD - Trade Idea

Entry Price – Sell Limit 1.10147

Take Profit – 1.09257

Stop Loss – 1.10734

Risk to Reward – 1: 1.50

Profit & Loss Per Standard Lot = +$890/ -$587

Profit & Loss Per Micro Lot = +$89/ -$58

Daily Price Outlook

EUR/USD is facing downward pressure as it remains below the critical 1.1000 level, vulnerable to modest USD strength. The pair retreated from its four-day peak around 1.1040, reacting to disappointing US NFP figures on Friday. During the Asian session, EUR/USD slipped below 1.1000, with a temporary halt to its two-day recovery from the 100-day SMA, near the recent one-month low reached last Thursday.

The US Dollar gains support as market sentiment leans towards the Federal Reserve maintaining its hawkish stance. July's nonfarm payroll report showed an addition of 187K jobs, signaling weakening demand for workers despite steady wage growth and an unexpected decline in the unemployment rate. This keeps the door open for the Fed to raise interest rates by another 25 basis points in September or November, boosting the USD and exerting pressure on EUR/USD.

Conversely, the European Central Bank (ECB) is expected to end its nine straight interest rate increases amid indications that underlying inflation in the Euro Zone has peaked. Fitch Ratings suggests that the peak in ECB rates is imminent due to declining Euro Zone inflation. The ECB's economic report released on Friday highlighted that the region's underlying inflation likely peaked during the first half of 2023, adding to the negative sentiment surrounding EUR/USD.

The upcoming US CPI report on Thursday will have a significant impact on market expectations for future rate hikes and USD demand. In the meantime, macroeconomic data for the Euro Zone, including German Industrial Production and Sentix Investor Confidence, will provide guidance for traders. The USD's performance will depend on comments from several FOMC members, as there are no major US economic releases scheduled at present. Policy-related remarks could create short-term opportunities for traders, but given the current landscape, a bearish outlook for EUR/USD remains the prevailing trend.

EUR/USD - Technical Analysis

The EURUSD pair's upward march was halted at the 1.1030 level, which corresponds to the disrupted neckline of the double top pattern, as depicted on the chart. It's noteworthy that the price has begun to display a bearish rebound from this juncture, indicating a potential return to the correctional bearish wave and setting negative targets down to 1.0880.

Hence, we anticipate further bearish propensity in the forthcoming trading sessions, reinforced by the clear negativity exhibited by the Stochastic Oscillator. However, it should be noted that a breach of the 1.1030 level could interrupt the projected decline and steer the price back to the primary bullish trend.

Today's expected trading range lies between the 1.0900 support and 1.1050 resistance levels.

The predicted market trend for today is bearish.

Daily Price Outlook

The EUR/USD currency pair has been unable to maintain its upward momentum and has recently lost some traction, currently trading at the level of 1.0943. Investors seem cautious and showing hesitancy in making strong bids due to the mixed market sentiment, which has been driven by the anticipation of crucial economic data releases from the US. Furthermore, the Eurozone's Retail Sales for June experienced a decline of 0.3% every month, falling short of the expected 0.2% growth. This disappointing economic data has further weakened the position of the EUR/USD pair in the market.

European Central Bank (ECB) Rate Hike Impact on EUR/USD Pair

The European Central Bank (ECB) increased interest rates by 0.25% to 4.25%. ECB President Christine Lagarde aims to achieve a 2% inflation target in the medium term. ECB member Fabio Panetta supports keeping higher interest rates for a while, balancing inflation risks with a weak economy to support growth.

These decisions can impact borrowing costs, savings, and overall economic conditions in the eurozone. The rate hike may attract investors to the Euro due to higher returns, potentially strengthening the currency against the US Dollar and appreciating the EUR/USD pair. Notably, the ECB's goal is to manage inflation and support economic growth in the eurozone.

Recent Economic Data Highlights Mixed Picture of Eurozone's Economy

According to recent data, Germany's Factory Orders have shown positive growth, increasing by 3.0% YoY and 7.0% monthly, signaling strength in the manufacturing sector. However, the Eurozone's Producer Price Index (PPI) for June dropped to its lowest level in three years, showing a decline of -3.4% YoY. Additionally, the HCOB Composite PMI for the bloc fell from 48.9 to 48.6, and the services PMI declined from 51.1 to 50.9 in July. These figures present a mixed picture of the Eurozone's economy, with signs of improvement in manufacturing but challenges in other sectors.

Impact of Upcoming US Data on USD and EUR/USD Pair

Looking forward, traders are awaiting the release of US wage inflation and employment data, which will likely influence the Federal Reserve's decisions on rate hikes. These decisions will have a direct impact on the US Dollar's performance and may exert pressure on the EUR/USD pair. Moreover, the focus will be on key indicators like Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings, providing trading opportunities for those interested in the EUR/USD pair.

EUR/USD - Technical Analysis

EUR/USD continues its intriguing journey as it tests the crucial resistance level at 1.0955. Despite its efforts to breach this pivotal point, the pair has managed to hold on below it, keeping the downward trend intact. Traders eagerly await the next move, with potential targets at 1.0880 and 1.0835, making for an exciting market outlook.

Adding to the intrigue, the Stochastic indicator has lost its positive momentum and entered overbought territory, providing further support for the resumption of the downward trend. However, it's important to keep an eye on potential game-changers – a breakthrough of 1.0955, followed by 1.0990, could effectively thwart the negative scenario and redirect prices towards the main upward trend.

As we gear up for today's trading, the anticipated range stands between the support level of 1.0850 and the resistance level of 1.1000. The excitement builds as we navigate the potential twists and turns of the market!

Daily Price Outlook

EUR/USD continues its intriguing journey as it tests the crucial resistance level at 1.0955. Despite its efforts to breach this pivotal point, the pair has managed to hold on below it, keeping the downward trend intact. Traders eagerly await the next move, with potential targets at 1.0880 and 1.0835, making for an exciting market outlook.

Adding to the intrigue, the Stochastic indicator has lost its positive momentum and entered overbought territory, providing further support for the resumption of the downward trend. However, it's important to keep an eye on potential game-changers – a breakthrough of 1.0955, followed by 1.0990, could effectively thwart the negative scenario and redirect prices towards the main upward trend.

As we gear up for today's trading, the anticipated range stands between the support level of 1.0850 and the resistance level of 1.1000. The excitement builds as we navigate the potential twists and turns of the market!

EUR/USD - Trade Idea

Entry Price – Sell Below 1.09585

Take Profit – 1.08750

Stop Loss – 1.09999

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$835/ -$414

Profit & Loss Per Micro Lot = +$83/ -$41