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EUR/USD Declines and continues its descent towards 1.0900. Fueled by Euro area inflation data that came in below expectations, raising the likelihood of an ECB rate cut. The pair additionally influenced by the sustained recovery of the US Dollar. All eyes are currently on the upcoming US PCE inflation data.
EUR/USD Declines: Daily Downturn and Near-Term Slide Analysis
The EUR/USD pair has undergone a significant daily downturn and is presently trading around the 1.0920 level. Daily chart analysis suggests that while the decline may persist, it appears to be in a corrective phase. With an overall risk inclination favoring the upside. The EUR/USD positioned above all its moving averages. With a bullish 20 Simple Moving Average (SMA) leading the way above the relatively directionless 100 and 200 SMAs. Although technical indicators have shifted lower, indicating a bearish momentum, they remain comfortably above their midlines.
On the 4-hour chart, a different picture emerges as the EUR/USD seems poised to extend its slide in the near term. The pair is currently below a now level 20 SMA. Situated around the 61.8% Fibonacci retracement of the 1.1275/1.0447 slide at 1.0960. Despite the longer moving averages retaining their bullish strength, they positioned well below the current level. Furthermore, technical indicators are within negative levels, signaling a diminishing directional strength.
EUR/USD Near 1.0900: Market Awaits US Inflation Amid Euro Decline
The EUR/USD pair situated near the 1.0900 level, with market participants eagerly awaiting inflation-related updates from the United States (US). During the mid-European session, the Euro faced considerable selling pressure, dropping approximately 50 pips against the US Dollar. This decline followed market speculation suggesting that the European Central Bank (ECB) might pause the reinvestments of the Pandemic Emergency Purchase Programme (PEPP) in the final days of 2023 due to low liquidity.
Subsequently, the EUR/USD extended its descent to 1.0909 following the release of the Eurozone Harmonized Index of Consumer Prices (HICP). Preliminary estimates from Eurostat reported the HICP at 2.4% YoY, marking a decline from October’s 2.9% and falling below the expected 2.7%. The monthly gauge showed a decrease of -0.5%, down from the 0.1% recorded in the previous month.
Also Read: Australian Dollar oscillates in Proximity to a Key Level
EUR/USD Declines to 1.0900: Awaited US Inflation Amidst Euro Decline
The EUR/USD pair is situated near the 1.0900 level, with market participants eagerly awaiting inflation-related updates from the United States (US). During the mid-European session, the Euro faced considerable selling pressure, dropping approximately 50 pips against the US Dollar. This decline followed market speculation suggesting that the European Central Bank (ECB) might pause the reinvestments of the Pandemic Emergency Purchase Programme (PEPP) in the final days of 2023 due to low liquidity.
Subsequently, the EUR/USD extended its descent to 1.0909 following the release of the Eurozone Harmonized Index of Consumer Prices (HICP). Preliminary estimates from Eurostat reported the HICP at 2.4% YoY, marking a decline from October’s 2.9% and falling below the expected 2.7%. The monthly gauge showed a decrease of -0.5%, down from the 0.1% recorded in the previous month.
