The State of EUR/USD Trading
- EUR/USD trades in negative territory below 1.1000 on Wednesday.
- The technical outlook remains bearish in the near term.
- The Fed will release the minutes of the September policy meeting later.
As of Wednesday, EUR/USD continues to trade below 1.1000, signaling a negative trend after a slight gain on Tuesday. The upcoming release of the Federal Reserve’s September policy meeting minutes could determine the pair’s next move.
Euro Price Performance This Week
The table below displays the percentage changes of the Euro (EUR) against major currencies this week, highlighting its weakness against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.11% | 0.26% | -0.01% | 0.74% | 0.92% | 1.23% | -0.12% |
Market Analysis and Outlook
Amid a positive shift in risk sentiment, the US Dollar struggled to gain strength on Tuesday, supporting EUR/USD. However, cautious investor behavior following a decline in Asian stock indices on Wednesday has bolstered the USD and weighed on the pair. Futures of US stock indices indicate a bearish opening on Wall Street.
The Fed’s decision to lower the policy rate by 50 bps in September will be closely scrutinized in the meeting minutes. Any indication of potential further rate cuts could weaken the USD. Markets currently assign a 13% probability to another 50 bps rate cut in November.
On the other hand, ECB Governor Peter Kazimir’s comments did not boost the Euro, highlighting the complexities of decision-making based on inflation figures.
EUR/USD Technical Analysis
The RSI indicator suggests further downside potential for EUR/USD, with key support levels at 1.0950, 1.0900, and 1.0870. Reclaiming 1.1000 could lead to resistance at 1.1050 and 1.1090-1.1100.
Frequently Asked Questions about the Euro
Learn more about the Euro, the European Central Bank, inflation data, economic indicators, and trade balance in our FAQ section.