EUR/USD Current Price Update: 1.1195
- Wall Street’s Positive Tone Pushes US Dollar Lower Against Euro
- Speculation Rises on Federal Reserve’s Potential 50 bps Cut in November
- EUR/USD Aiming to Break the 1.1200 Threshold Amidst Market Volatility
Today, the EUR/USD pair experienced fluctuations, starting with an intraday high of 1.1198 before stabilizing as Wall Street prepares to open. The US Dollar initially gained ground early in the day but faced resistance as the Euro emerged as a resilient contender against the USD.
Market sentiment shifted away from the USD following negative US data, leading to speculation that the Federal Reserve may implement a 50 basis points interest rate cut in November, contrary to earlier expectations of a 25 bps reduction. This shift in expectations propelled US indices higher, with Asian and European markets showing mixed performance.
While European Central Bank’s non-monetary policy meeting had minimal impact, US released positive MBA Mortgage Applications data for the week ended September 20, showing an 11% increase. Later today, August New Home Sales data will be released, influencing market sentiment further.
EUR/USD Short-Term Technical Analysis
Technically, the EUR/USD pair is poised for further gains, though the battle around the crucial 1.1200 level remains undecided. Daily charts indicate a higher high and a higher low, with the 20 Simple Moving Average (SMA) trending upwards near 1.1090. The 100 SMA is bullish, supported by a slightly positive 200 SMA. Despite flat technical indicators, positive sentiment prevails.
In the short term, the bullish bias persists on the 4-hour chart, with EUR/USD well above key moving averages and positive technical indicators. Immediate support lies at 1.1170, a crucial level from recent sessions.
Key Levels:
- Support: 1.1165, 1.1120, 1.1090
- Resistance: 1.1200, 1.1250, 1.1290