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The Euro Declined and faced resistance above the 1.1000 level against the US Dollar on Wednesday. That resulting in a retreat of the EUR/USD pair to the vicinity of 1.0970. This pullback coincided with a notable resurgence in the US Dollar.
In relation to the Greenback, it witnessed renewed buying interest and approached the pivotal level of 103.00 on the USD Index (DXY).
Declined: Monetary Policy Overview and Key Economic Indicators
The present monetary policy landscape remains static. With investors factoring in the potential for upcoming interest rate reductions by both the Federal Reserve (Fed) and the European Central Bank (ECB) in the spring of 2024.
In terms of the euro-centric agenda, particular attention will be directed toward the imminent release of Germany’s flash Inflation Rate for November.
Across the Atlantic, the spotlight will be on the advanced Q3 GDP Growth Rate. Complemented by preliminary Goods Trade Balance figures and the customary monitoring of Mortgage Applications by the MBA. The day’s schedule will conclude with the release of the Fed’s Beige Book during the latter part of the North American session.
Furthermore, Cleveland Fed representative Loretta Mester. A voting member for the year 2024 with a known hawkish stance, scheduled to deliver a speech.
Also Read: Australian Inflation: Strong Argument for Interest Rate Halt
EUR/USD Surges to 1.1020, Eyes November Highs As Euro Declined
As Euro Declined, EUR/USD experienced a surge, reaching new monthly highs around 1.1020 on Wednesday, propelled by continued upward momentum. However, this bullish momentum waned thereafter.
The immediate target for EUR/USD set at the November high of 1.1017 (recorded on November 29). Followed by the August peak of 1.1064 (on August 10) and another weekly high of 1.1149 (on July 27). These levels precede the 2023 high of 1.1275, observed on July 18.
In the event of corrective declines, initial support expected around the crucial 200-day Simple Moving Average (SMA) at 1.0814, followed by the interim 55-day SMA at 1.0671. Subsequently, the weekly low of 1.0495 (on October 13) is the next level. Followed by the 2023 low of 1.0448 (on October 3).
The bullish outlook for the pair remains intact, contingent on its ability to sustain trading above the 200-day SMA.
