The Euro (EUR)
The Euro (EUR)
Fundamental:
Key news events today
Industrial Production (10:00 am GMT)
What can we expect from EUR today?
Industrial production in the Eurozone has been mixed over the past five months with September seeing a fall of 1.1% MoM. October’s forecast of -0.3% points to another month of decline, albeit a minor one. Higher rates have negatively impacted industrial activity for most parts of 2023. The Euro could continue to edge lower should industrial production print another round of weaker figures.
Central Bank Notes:
- The ECB kept the three key interest rates unchanged.
- Inflation is still expected to stay too high for too long, and domestic price pressures remain strong.
- The Governing Council’s past interest rate increases continue to be transmitted forcefully into financing conditions.
- The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction.
- Next meeting is on 14 December 2023.
Next 24 Hours Bias
Medium Bearish
TECHNICAL:
The EUR/USD chart currently has a bearish overall momentum, with price trading below the bearish Ichimoku cloud, indicating a bearish trend in place. In this scenario, price could potentially continue its bearish momentum towards the 1st support level.
The 1st support at 1.0748 is considered an overlap support and coincides with the 50% Fibonacci Retracement level. This level is significant as it suggests a potential area where buying interest may emerge, providing temporary support for EUR/USD.
Similarly, the 2nd support at 1.0666 is another overlap support level and aligns with the 61.80% Fibonacci Retracement level, further reinforcing the potential for price to find support in this area.
On the resistance side, the 1st resistance at 1.0824 is categorized as an overlap resistance. This level is likely to act as a barrier where selling interest could intensify, potentially preventing further upside movements.
Further up, the 2nd resistance at 1.0879 is identified as a pullback resistance and coincides with the 50% Fibonacci Retracement level, suggesting another level where selling pressure may increase.