Yahoo Finance EUR/USD Daily Price Forecast – EUR/USD Moved Below 1.15 Handle Post FOMC Update
The EUR/USD pair remained around daily lows after the release of the FOMC minutes yesterday. Previously the euro printed a fresh 1-week low at 1.1510 and held near that level following Fed’s minutes. Wednesday was dollar’s day, with the American currency strengthening against all of its major rivals since London trading hours.
A combination of softer local equities, undermined by political tensions and poor inflation figures in the Old Continent, weighed on European currencies, benefiting the greenback. Dovish macro data in the European market further added bearish influence to EURO yesterday. While worse-than-expected US housing data gave euro some breathing space, the dollar resumed its momentum supported by hawkish investor sentiment for USD across the globe.
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US Macro Data To Remain Main Driving Force For The Day
As of writing this article, the pair is trading at 1.1513 up by 0.10% on the day after hit 1.1482 earlier in the day. The EUR/USD finds itself on the low side and fell below 1.1500 major handles heading into Thursday’s European market session, and another round of the EU’s EcoFin meetings. The Euro saw declines in yesterday’s trading, slipping steadily from the day’s high of 1.1580, and sellers gained momentum heading through Wednesday’s US session after the US FOMC produced a headily hawkish Minutes report.
The economic calendar is fairly thin for the Euro, with the German Wholesale Price Index at 06:00 GMT (forecast 0.4%, last 0.3%) alongside the Swiss Trade Balance for September (forecast 2.482 billion, last 2.134 billion), but the low-impact figures are unlikely to drive much action as traders keep an eye out for headlines spilling over from the EU’s EcoFin meeting, which continues today in Brussels.
The EUR/USD pair remained around daily lows after the release of the FOMC minutes yesterday. Previously the euro printed a fresh 1-week low at 1.1510 and held near that level following Fed’s minutes. Wednesday was dollar’s day, with the American currency strengthening against all of its major rivals since London trading hours. A combination of softer local equities, undermined by political tensions and poor inflation figures in the Old Continent, weighed on European currencies, benefiting the greenback. Dovish macro data in the European market further added bearish influence to EURO yesterday. While worse-than-expected US housing data gave euro some breathing space, the dollar resumed its momentum supported by hawkish investor sentiment for USD across the globe.
When looking from a technical perspective, bulls have been discouraged after several failed attempts to break above 1.1600, pushing the pair through the lower end of its latest range and a strong support, now resistance, the 23.6% retracement of the 1.1814/1.1431 decline at around 1.1520. In the 4 hours chart, and despite bouncing from such low, the pair is trading below its 20 and 100 SMA, both converging right below the 38.2% retracement of the mentioned decline and with bearish slopes, keeping the risk skewed to the downside.
The Momentum indicator in the mentioned chart maintains its bearish slope well below its midline, while the RSI has accelerated his decline, currently at 34 all of which favors a downward extension toward its recent lows in the 1.1430 price zone. Expected support and resistance price levels for the day are at 1.1460, 1.1430 and 1.1520, 1.1575 respectively.
This article was originally posted on FX Empire
