- 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
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
