EUR/USD remains range-bound ahead of key data releases
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Consolidation Near 1.0800 as Market Awaits Eurozone and US Data
The EUR/USD pair trades within a narrow range around the 1.0800 mark as investors exercise caution ahead of significant economic data releases from both sides of the Atlantic. This restrained movement, seen for a third consecutive day, is likely to remain until more clarity emerges from the Eurozone’s flash Q3 GDP and German inflation figures, as well as the US GDP data. These releases will set the tone for potential volatility in the pair.
Eurozone Concerns and US Election Jitters Weigh on EUR/USD
In the Eurozone, analysts expect German inflation data to show a slight increase to 2.1% in October, reflecting continued inflationary pressures. However, with softening growth expectations and cautious commentary from ECB officials, any substantial impact on the ECB’s upcoming policy decisions remains limited. The region’s broader economic outlook has weakened amid these factors, while a Trump victory in the US election is anticipated to apply further pressure on the Eurozone. Trump’s tariff proposals, specifically a 10% universal import tariff, could disrupt Eurozone exports, which Goldman Sachs projects could cut the region’s GDP by 1%.
Technical Analysis: Downside Risks Dominate
On the technical front, EUR/USD hovers close to its short-term support around 1.0750, which is key as it sustains the trendline from the October 2023 low. A breakdown below 1.0750 could lead to additional weakness, targeting 1.0700. Meanwhile, the 200-day Exponential Moving Average (EMA) near 1.0900 serves as crucial resistance, reflecting a larger bearish outlook as the pair remains below this level. The 14-day RSI also indicates potential further downside, staying within the bearish 20.00-40.00 range.
With significant economic data on the horizon, this consolidation phase may soon give way to a clearer directional movement. Investors will look for a breach of either the 1.0750 support or a rally towards the 1.0900 resistance as a signal for the next leg in the EUR/USD trend. --
The EUR/USD pair trades within a narrow range around the 1.0800 mark as investors exercise caution ahead of significant economic data releases from both sides of the Atlantic. This restrained movement, seen for a third consecutive day, is likely to remain until more clarity emerges from the Eurozone’s flash Q3 GDP and German inflation figures, as well as the US GDP data. These releases will set the tone for potential volatility in the pair.
Eurozone Concerns and US Election Jitters Weigh on EUR/USD
In the Eurozone, analysts expect German inflation data to show a slight increase to 2.1% in October, reflecting continued inflationary pressures. However, with softening growth expectations and cautious commentary from ECB officials, any substantial impact on the ECB’s upcoming policy decisions remains limited. The region’s broader economic outlook has weakened amid these factors, while a Trump victory in the US election is anticipated to apply further pressure on the Eurozone. Trump’s tariff proposals, specifically a 10% universal import tariff, could disrupt Eurozone exports, which Goldman Sachs projects could cut the region’s GDP by 1%.
Technical Analysis: Downside Risks Dominate
On the technical front, EUR/USD hovers close to its short-term support around 1.0750, which is key as it sustains the trendline from the October 2023 low. A breakdown below 1.0750 could lead to additional weakness, targeting 1.0700. Meanwhile, the 200-day Exponential Moving Average (EMA) near 1.0900 serves as crucial resistance, reflecting a larger bearish outlook as the pair remains below this level. The 14-day RSI also indicates potential further downside, staying within the bearish 20.00-40.00 range.
With significant economic data on the horizon, this consolidation phase may soon give way to a clearer directional movement. Investors will look for a breach of either the 1.0750 support or a rally towards the 1.0900 resistance as a signal for the next leg in the EUR/USD trend. --