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EUR/USD: The 1.1000 zone is starting to look more like a ceiling than a target

  • The EUR/USD pair is hovering around the 1.0990 level as Euro bidders lack the conviction to decisively reclaim the 1.1000 level.
  • Markets are still tilted towards risk appetite, but weaknesses persist.
  • The Fed’s speech and better-than-expected US GDP numbers are dampening market hopes for an acceleration of Fed rate cuts.

The EUR/USD pair reached the 1.1000 zone on Tuesday, but investors were unable to maintain the bullish momentum against the US Dollar and the pair returned below the 1.0990 and 1.0960 zone during the session on Wednesday.

US Gross Domestic Product (GDP) growth exceeded expectations, with annualized real GDP growth at 5.2% versus 5.0% forecast, up from 4.9% previously.

The EUR/USD pair moves around levels known before the European HICP

The Eurozone Harmonized Consumer Price Index (HICP) for November will be published on Thursday, followed by the United States Personal Consumption Price Index (PCE) for October.

Both the Eurozone HICP and the US PCE are expected to show a slow decline in headline inflation: the month-on-month HICP for November would stand at 3.9%, compared to 4.2% in October, while the core CPI for October It would stand at 0.2%, compared to the previous 0.3%. Annualized US CPI inflation is expected to be 3.5% in October, up from 3.7% previously.

EUR/USD Technical Outlook

The EUR/USD pair has continued to rise since the Euro crashed against the 200-day moving average (SMA) near 1.0800, and the pair is running into technical resistance in the 1.1000 area.

With the 50-day SMA still drifting below the 200-day SMA, a bullish crossover of the two moving averages will go a long way in providing technical support for a sustained move higher, although EUR/USD may need to decline. back into the 1.0850 region to get it going.

The Euro is up more than 5% against the US Dollar from the October low at 1.0450, and the EUR/USD remains in positive territory so far this year, but the mid-2023 high at 1.1275 is weighing on the long-term trend as the pair is weighed down near 1.1000 with technical indicators leaning towards overbought territory.

EUR/USD Daily Chart

EUR/USD technical levels


Latest price today 1.0985
Today Daily variation -0.0003
Today’s daily variation -0.03
Today’s daily opening 1.0988
daily SMA20 1.0806
daily SMA50 1.0666
SMA100 daily 1.0792
SMA200 daily 1.0814
Previous daily high 1.1009
Previous daily low 1.0934
Previous weekly high 1.0965
Previous weekly low 1.0852
Previous Monthly High 1.0695
Previous monthly low 1.0448
Daily Fibonacci 38.2 1.0981
Fibonacci 61.8% daily 1.0963
Daily Pivot Point S1 1.0946
Daily Pivot Point S2 1.0903
Daily Pivot Point S3 1.0871
Daily Pivot Point R1 1,102
Daily Pivot Point R2 1.1052
Daily Pivot Point R3 1.1095

Source: Fx Street

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