The EUR/USD exchange rate continues its descent after failing to hold above 1.0950. On Wednesday, the pair encountered resistance at 1.0920 before experiencing another round of price depreciation. Finding support at 1.0850, the potential for further downside exists, targeting the crucial support level at 1.0830. The short-term downtrend line is positioned at 1.0900, and a move above this level could provide momentum for the Euro.
On the 4-hour chart, technical indicators suggest a continued bearish trend but lack strong conviction. The MACD indicator signals bearish tendencies, while the Relative Strength Index (RSI) moves laterally, indicating potential consolidation in the range of 1.0890 to 1.0860 or around the 1.0830 region. A drop below the subsequent level would increase downward pressure, leading to additional losses for the Euro.
The EUR/USD rate retreated on Wednesday to the 1.0850 area, driven by a stronger US Dollar following the release of US economic data. This pair continues to pull back from monthly highs in a corrective move.
Bundesbank President Joachim Nagel stated on Wednesday that interest rates in the Eurozone are nearing their peak. Market participants believe that interest rates are unlikely to increase further unless inflation recovers.
Key data will be released on Thursday, including preliminary PMI indices for November. Forecasts suggest further improvements, but all figures are expected to remain below 50. This data could impact the market, and any negative surprises may add pressure to the current adjustment in EUR/USD. The Flash Services PMI is expected to rise from 47.8 to 48.0, and Manufacturing from 43.1 to 43.3. Also on Thursday, the European Central Bank (ECB) will release the minutes of its latest monetary policy meeting.
The US Dollar has further recovered from monthly lows, gaining momentum after the release of mixed US data showing a larger-than-expected decrease in initial jobless claims and a significant drop in durable goods orders. The US market will be closed on Thursday. Bond yields continue to rise, supporting the ongoing adjustment of the US Dollar. Market sentiment seems poised for a consolidation ahead.
On the 4-hour chart, technical indicators suggest a continued bearish trend but lack strong conviction. The MACD indicator signals bearish tendencies, while the Relative Strength Index (RSI) moves laterally, indicating potential consolidation in the range of 1.0890 to 1.0860 or around the 1.0830 region. A drop below the subsequent level would increase downward pressure, leading to additional losses for the Euro.
The EUR/USD rate retreated on Wednesday to the 1.0850 area, driven by a stronger US Dollar following the release of US economic data. This pair continues to pull back from monthly highs in a corrective move.
Bundesbank President Joachim Nagel stated on Wednesday that interest rates in the Eurozone are nearing their peak. Market participants believe that interest rates are unlikely to increase further unless inflation recovers.
Key data will be released on Thursday, including preliminary PMI indices for November. Forecasts suggest further improvements, but all figures are expected to remain below 50. This data could impact the market, and any negative surprises may add pressure to the current adjustment in EUR/USD. The Flash Services PMI is expected to rise from 47.8 to 48.0, and Manufacturing from 43.1 to 43.3. Also on Thursday, the European Central Bank (ECB) will release the minutes of its latest monetary policy meeting.
The US Dollar has further recovered from monthly lows, gaining momentum after the release of mixed US data showing a larger-than-expected decrease in initial jobless claims and a significant drop in durable goods orders. The US market will be closed on Thursday. Bond yields continue to rise, supporting the ongoing adjustment of the US Dollar. Market sentiment seems poised for a consolidation ahead.
