EUR/USD Continues Bearish Trend
- EUR/USD lost another sixth of a percent on Tuesday, dipping below 1.0800.
- ECB Lagarde’s middling comments did little to support Fiber bids.
- EU and US PMI set to clash on Thursday.
The EUR/USD pair found further room on the low side on Tuesday, easing back another 0.16% and testing into a key technical barrier that could see fresh 16-week lows if the price floor opens up beneath the Euro.
European Central Bank (ECB) President Christine Lagarde made a handful of appearances on Tuesday, but her comments failed to provide support to the Euro. Lagarde’s remarks ranged from pedestrian to unremarkable, with no significant impact on the Fiber. The market sees the Euro on pace to decline against the Greenback for a fourth consecutive week, as Lagarde’s statements lacked forward guidance for currency markets.
Global PMI Figures Release
Global PMI figures are set for a rolling release on Thursday. Market expectations for pan-EU PMI survey results are high, with median forecasts calling for a slight uptick in October’s EU Services PMI to 51.6 from September’s 51.4.
EUR/USD Price Forecast
The EUR/USD pair continues to exhibit bearish momentum, trading near 1.0800. The short- to medium-term trend remains bearish as the pair stays below key support levels, with the 50-day EMA at 1.0983 and the 200-day EMA at 1.0909. As long as the pair remains below these levels, the downside is favored, with 1.0750 acting as the next major support area.
- The MACD indicator shows a strong bearish signal, with the MACD line below the signal line.
- The histogram remains in negative territory, indicating a potential continuation of the downtrend in the short term.
- A break below the 1.0800 psychological level could accelerate further declines toward the next support around 1.0750.
Euro FAQs
The Euro is the currency for the 19 European Union countries in the Eurozone, with the EUR/USD pair being the most heavily traded currency pair in the world. The European Central Bank (ECB) in Frankfurt, Germany, manages the Eurozone’s monetary policy and interest rates. Eurozone inflation data, economic indicators, and trade balance are crucial factors affecting the Euro’s strength.