EUR/USD slipped back below 1.1150 as bidders struggle to maintain balance, signaling a breakdown in bullish market sentiment and giving the Greenback room to breathe. With the anticipation of Federal Reserve rate cuts in September, risk appetite remains high in the broad market, impacting the currency pair’s movement.
While the middle of the trading week lacks significant economic events, Thursday’s US GDP figures release will be closely watched. Markets have already priced in Q2 annualized GDP growth to remain steady near 2.8%, leading to little expected movement in the market. However, Friday’s data releases, including pan-EU HICP inflation and US PCE inflation, will be crucial in determining investor sentiment.
EUR/USD Price Forecast
EUR/USD’s movement below the 1.1150 level suggests a struggle for the pair to continue its upward trajectory. Testing levels above the 200-day EMA at 1.0850, a sustained slide could see price action drop back to the 50-day EMA near 1.0940.
EUR/USD Daily Chart
Euro FAQs
The Euro is the currency for the 20 European Union countries in the Eurozone, with EUR/USD being the most heavily traded currency pair globally. The European Central Bank (ECB) manages monetary policy and sets interest rates, impacting the Euro’s value. Eurozone inflation data, economic indicators, and trade balance also influence the Euro’s performance in the financial market.