EUR/USD Current Price Analysis
- German Inflation Eases in September
- Upcoming Release of US Nonfarm Payrolls Report
- EUR/USD Retreating from 1.1200 Level
The EUR/USD pair reached 1.1208 during European trading on Monday, driven by the ongoing weakness in the US Dollar. Positive news from China regarding economic stimulus measures and global central banks’ easing policies have boosted market sentiment. Investors are also optimistic about further interest rate cuts.
This week’s economic calendar is packed with key events, including European inflation data and the US employment report. Germany’s preliminary September Harmonized Index of Consumer Prices (HICP) showed a slight easing, rising by 1.8% year-on-year and declining by 0.1% month-on-month.
On the US front, Federal Reserve Chair Jerome Powell is scheduled to speak, along with the release of important data like the Chicago Purchasing Managers’ Index (PMI) and the Dallas Fed Manufacturing Business Index for September.
EUR/USD Short-Term Technical Outlook
Looking at the daily chart, the EUR/USD pair remains bullish, trading above key moving averages. The 20 Simple Moving Average (SMA) is providing support around 1.1110, while the 100 SMA is trending higher above the flat 200 SMA. Technical indicators suggest further upside potential if the pair breaks above the 1.1200 resistance level.
On the 4-hour chart, EUR/USD shows a neutral-to-bullish bias. The pair is above all moving averages, with technical indicators hovering above their midlines. The 20 SMA acts as a support level at 1.1160, with longer moving averages indicating limited downside potential.
Support Levels: 1.1160, 1.1110, 1.1075
Resistance Levels: 1.1200, 1.1250, 1.1290
Analysis:
The EUR/USD pair’s current price action reflects a mix of fundamental factors influencing the currency pair. With German inflation easing and upcoming US economic data releases, traders are closely monitoring developments that could impact the exchange rate. The technical outlook suggests a bullish bias, with key support and resistance levels to watch for potential trading opportunities.
For investors and traders, understanding the dynamics of the EUR/USD pair is crucial for making informed decisions in the foreign exchange market. By analyzing both fundamental and technical aspects, market participants can navigate the volatile currency markets with more confidence.