EUR/USD Analysis: Current Price at 1.0976 Amidst Positive US Data

  • Positive US economic data boosts financial markets sentiment
  • Euro struggles despite resurgent risk appetite
  • EUR/USD faces potential downside risk, but buyers remain active

The EUR/USD pair closed at 1.0976 following the release of encouraging US macroeconomic data, causing the Euro to lose ground against the US Dollar. The positive figures, including a higher-than-expected increase in July Retail Sales and better-than-anticipated Initial Jobless Claims, eased concerns of a US recession and lifted investor confidence.

However, not all US economic indicators were as strong, with Capacity Utilization and Industrial Production missing expectations. Despite this, US stocks maintained their upward momentum while the EUR/USD pair managed to recover some of its losses.

Investors are still anticipating a potential rate cut by the Federal Reserve in September, although the exact magnitude of the cut remains uncertain.

Upcoming economic releases include the Eurozone’s June Trade Balance and the US’s preliminary estimate of the August Michigan Consumer Sentiment Index and Consumer Inflation Expectations.

EUR/USD Technical Analysis

On a daily chart, the EUR/USD pair shows signs of further downside potential, with technical indicators pointing towards a possible extension of the slide. However, the pair remains above key moving averages, which could limit the extent of the decline if the 1.0950 support level holds.

In the 4-hour chart, the pair is in a neutral-to-bullish stance, with technical indicators lacking clear direction. The 20 SMA acts as a key resistance level, while longer moving averages suggest buyers are still present in the market.

Support levels: 1.0950, 1.0900, 1.0860

Resistance levels: 1.0970, 1.1005, 1.1045

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