As the world’s leading investment manager and financial market journalist, I bring you the latest on the EUR/USD pair trading around 1.0920 in the early European session on Monday. With the US Dollar (USD) showing signs of consolidation, the pair is maintaining its positive momentum above the 100-day Exponential Moving Average (EMA) and a bullish RSI momentum indicator.
Investors are eagerly awaiting the German August ZEW survey on Tuesday, with expectations of 31.8 versus 41.8 in July for economic sentiment and a current assessment of -75.0 versus -68.9 prior. Any weaker-than-expected data could signal a negative outlook for the economy, potentially keeping the European Central Bank (ECB) in easing mode with a September 12 rate cut already priced in.
Looking at the daily chart, the bullish outlook for EUR/USD remains intact as the pair stays well above the key 100-day EMA. The 14-day Relative Strength Index (RSI) hovering around 58.60 further supports the potential for upside movement in the near term.
The immediate resistance level stands at 1.0973, with a crucial resistance zone at 1.1000-1.1010 presenting a significant hurdle for further gains. On the downside, initial support lies at 1.0881, followed by the 100-day EMA at 1.0822 and a low of June 12 at 1.0735.
Euro FAQs
The Euro is the second most traded currency in the world, heavily influencing the EUR/USD pair, which accounts for around 30% of all forex transactions. The European Central Bank (ECB) plays a crucial role in managing the Eurozone’s monetary policy, with interest rates and inflation data impacting the Euro’s value.
Key economic indicators such as GDP, PMIs, and trade balance data can influence the Euro’s direction, making it essential for investors to stay informed about economic releases from major Eurozone economies. Understanding these factors can help individuals make informed decisions about their investments and financial strategies.