EUR/USD Analysis: Business Climate Deteriorates in Europe
- German IFO Survey reveals Business Climate decline in September.
- Upcoming release of September CB Consumer Confidence in the US.
- EUR/USD lacks clear direction, supported by overall US Dollar weakness.
The EUR/USD pair continues to trade above the 1.1100 mark, with recent negative news from Europe impacting Euro demand. The German IFO survey on Business Climate showed a decrease in September, falling to 85.4 from the previous 86.6 in August. Current situation assessment declined to 84.4, while expectations dropped to 86.3 as anticipated.
Market Insights: China’s Stimulus Measures and US Consumer Confidence Data
Financial markets started cautiously as China announced measures to support its economy, including Reserve Requirement Ratio cuts and interest rate adjustments. Despite this, stock markets remained stable during the Asian and European sessions. In the US, September CB Consumer Confidence data is expected to show a modest improvement from the previous month’s 103.3, along with the release of the Richmond Fed Manufacturing Index for the same period.
EUR/USD Technical Analysis: Short-term Outlook
On the daily chart, EUR/USD shows limited bullish potential with technical indicators holding at positive levels. The 20 Simple Moving Average (SMA) acts as dynamic support around 1.1090, while the 100 SMA gains upward momentum after crossing above the 200 SMA. In the near term, the 4-hour chart indicates a neutral-to-bearish stance, with the pair facing resistance near 1.1150 and support around 1.1090.
- Support levels: 1.1090, 1.1050, 1.1010
- Resistance levels: 1.1160, 1.1200, 1.1250