Contents
On Wednesday, in the EUR/USD Outlook the pair experienced a 0.30% decline, following a 0.37% loss on Tuesday, ultimately concluding the day at $1.07641. The currency pair reached its zenith at $1.08047 but later descended to a nadir of $1.07586.
Investor focus directed toward Thursday’s economic indicators, specifically German industrial production and Eurozone GDP figures. A potential upswing in industrial production could influence the EUR/USD’s attractiveness to buyers. Notably, the German manufacturing sector constitutes less than 30% of the German economy, and an improvement in these metrics would allay concerns about an extended economic downturn.
Highlights:
- EUR/USD Performance: On Wednesday, the EUR/USD dropped by 0.30%, closing at $1.07641 after fluctuating between $1.08047 and $1.07586.
- Key Economic Indicators: Investor focus is on Thursday’s German industrial production and Eurozone GDP figures. Positive metrics could ease concerns about an economic downturn.
- Impact of US Jobless Claims: Increased interest in Thursday’s US jobless claims, with a larger-than-expected surge potentially supporting expectations for a Q1 2024 Federal Reserve rate cut.
- EUR/USD Technical Analysis: Technical analysis indicates a bearish short-term outlook below the 50-day EMA but a bullish longer-term sentiment above the 200-day EMA. A breach of the 50-day EMA and $1.07838 resistance would signal a positive shift, while breaking below the 200-day EMA could bring attention to the $1.06342 support level. The 14-period Daily RSI at 44.42 suggests a potential decline to $1.07000 before oversold territory. Market dynamics influenced by economic indicators, ECB commentary, and US jobless claims, shaping buyer demand.
EUR/USD Outlook: Key Economic indicators and Eurozone GDP
Whithin EUR/USD Outlook, the Economists are projecting a 0.2% growth in industrial production for October, in contrast to a 1.4% decline in September. However, the Eurozone GDP figures for Q3 carry greater weight. A positive revision to Q3 GDP numbers could enhance expectations of a sustained higher interest rate trajectory by the European Central Bank (ECB). According to the second estimate, the Eurozone economy contracted by 0.1% in Q3. Beyond the headline figures, careful consideration should given to private consumption and services.
In addition to the statistical data, the commentary from the ECB will be pivotal in shaping market dynamics. ECB President Christine Lagarde scheduled to deliver remarks.
Market Focus: EUR/USD Outlook Impact Of US Jobless Claims and Federal Reserve Policy
Thursday will see increased investor interest in US jobless claims. The weekly report is expected to draw heightened market sensitivity. Particularly in anticipation of the upcoming US Jobs Report on Friday. If there is a larger-than-expected surge in jobless claims. It could reinforce expectations for a Federal Reserve rate cut in Q1 2024.
A decline in labor market conditions has the potential to impact both wage growth and disposable income. A reduction in disposable income, in turn, may influence consumer spending and mitigate demand-driven inflation. A more subdued outlook on inflation would lend support to a less assertive stance on interest rates by the Federal Reserve.
Economists are forecasting an increase in initial jobless claims from 218k to 222k in the week ending December 2.
Also Read: Asian stocks dip on Strong China concerns
EUR/USD Outlock: Technichal Analysis ,Short-Term Bearish Signals Amidst Long-Term Optimism
In The EUR/USD outlook the pair is currently positioned below the 50-day EMA. Yet it maintains a stance above the 200-day EMA. Signaling a bearish short-term outlook but conveying a bullish sentiment for the longer term.
A potential advancement in the EUR/USD would be indicated by a breach of the 50-day EMA and surpassing the resistance level at $1.07838. Paving the way for a move towards the $1.09294 resistance level.
Source: Tradingcompass
Market dynamics will be influenced by various factors. Including German and Eurozone economic indicators, ECB commentary, and US jobless claims, all of which will play a role in shaping buyer demand.
On the contrary, a break below the 200-day EMA in the EUR/USD would shift attention to the $1.06342 support level.
The 14-period Daily RSI, currently at 44.42, suggests a potential descent in the EUR/USD to $1.07000 before entering oversold territory.
EUR/USD Trends and Key Levels
The EUR/USD lingered below both the 50-day and 200-day EMAs, indicating a bearish trend.
A breach above the $1.07838 resistance and 200-day EMA would bring the 50-day EMA into play.
Source: Tradingcompass
On the flip side, a descent below $1.07500 might activate the $1.06342 support levels.
With a 14-period RSI at 25.93 on the 4-hour chart, the EUR/USD sits in oversold territory, hinting at potential buying interest around the $1.07500 level.
