EUR/USD Analysis: What Investors Need to Know
As the Eurozone Harmonized Index of Consumer Prices rose 1.8% in the year to September, multiple Federal Reserve officials are set to make announcements during American trading hours. Here’s a breakdown of the current state of EUR/USD and what to expect:
Market Overview
- EUR/USD Current Price: 1.1082
- Recent Trend: Bearish, with a potential slide towards 1.1000
Factors Influencing EUR/USD Movement
The recent fall in the EUR/USD pair can be attributed to a few key factors:
- US Dollar Strength: The USD is benefiting from a negative market sentiment and comments from Fed Chair Jerome Powell.
- Eurozone Inflation Data: The Eurozone’s inflation figures have been softer than expected, allowing the ECB to consider further monetary loosening.
Upcoming Events
Within the US session, key economic indicators and Fed officials’ speeches will impact EUR/USD movement:
- JOLTS and ISM Manufacturing Index: Important economic data releases from the US.
- Fed Official Statements: Multiple Fed officials will provide insights into the central bank’s future monetary policy decisions.
Technical Analysis
From a technical perspective, the EUR/USD pair shows the following indicators:
- Daily Chart: Below the 20 SMA but above the 100 and 200 SMAs, with RSI indicating a bearish trend.
- 4-Hour Chart: Developing below all moving averages, with strong selling pressure and indicators pointing towards further downside.
Key Levels to Watch
For traders and investors, here are the critical support and resistance levels for EUR/USD:
- Support: 1.1075, 1.1040, 1.1000
- Resistance: 1.1110, 1.1150, 1.1200