EUR/USD Price Analysis: Market Stabilizes as Hopes for Rate Hikes Fade
- Japanese Rate Hike Speculation Cools, Boosting Market Sentiment
- US Treasury Yields Recover, Supporting Global Stocks
- EUR/USD Neutral-to-Bearish, Key Support at 1.0890
The EUR/USD pair found stability above 1.0900 amid improving market sentiment. The Bank of Japan’s cautious stance on interest rates and the recovery of US Treasury yields are driving the current market dynamics. BoJ Deputy Governor Shinichi Uchida’s remarks on rate hikes and the recent US bond yield rebound have had a positive impact on global stocks, influencing the direction of the US Dollar.
Key economic data releases include Germany’s Trade Balance and Industrial Production figures, as well as the US MBA Mortgage Applications and Consumer Credit Change reports. These data points provide insights into the health of both economies and can influence currency movements.
EUR/USD Technical Analysis: Short-Term Outlook
On the daily chart, EUR/USD is trading in the red, with technical indicators signaling a neutral-to-bearish bias. The pair is currently hovering near the 20 SMA, with support at 1.0890. A break below this level could lead to further downside momentum, with key support levels at 1.0845 and 1.0800. Resistance levels to watch include 1.0950, 1.1005, and 1.1045.
Overall, the EUR/USD pair remains sensitive to shifts in market sentiment, economic data releases, and central bank policies. Traders should monitor key support and resistance levels for potential trading opportunities in the near term.