EUR/USD Forecast: Euro needs to reclaim 1.0570 to attract buyers
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Subscribe to Premium- EUR/USD stabilized near 1.0550 following Thursday's sharp decline.
- The pair could attract technical buyers if it manages to clear 1.0570.
- Risk perception could drive the USD's valuation ahead of the weekend.
EUR/USD stabilized at around 1.0550 early Friday after posting large losses on Thursday. The technical outlook points to a loss of bullish momentum but buyers could show interest if the pair manages to flip 1.0570 into support.
The renewed US Dollar (USD) strength forced EUR/USD to turn south in the American session on Thursday following the latest inflation figures.
The Consumer Price Index (CPI) in the US rose 3.7% on a yearly basis in September, the US Bureau of Labor Statistics reported. The annual Core CPI inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast. Assessing the underlying details of the report, "the Fed's 'supercore' (core services excluding home rent component) jumped 0.6% month-over-month, bringing the most recent three month annualized growth rate to 4.8% from 2.2% in August," said Nathan Janzen, Assistant Chief Economist at Royal Bank of Canada.
Euro price this week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.15% | 0.04% | 0.06% | 0.69% | 0.32% | 0.85% | -0.30% | |
| EUR | -0.17% | -0.11% | -0.11% | 0.53% | 0.16% | 0.71% | -0.44% | |
| GBP | -0.03% | 0.12% | 0.03% | 0.62% | 0.29% | 0.79% | -0.32% | |
| CAD | -0.04% | 0.11% | -0.01% | 0.65% | 0.27% | 0.80% | -0.34% | |
| AUD | -0.70% | -0.50% | -0.63% | -0.60% | -0.34% | 0.16% | -0.95% | |
| JPY | -0.33% | -0.17% | -0.29% | -0.25% | 0.32% | 0.49% | -0.62% | |
| NZD | -0.84% | -0.68% | -0.80% | -0.78% | -0.17% | -0.51% | -1.15% | |
| CHF | 0.26% | 0.44% | 0.32% | 0.35% | 0.94% | 0.60% | 1.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Early Friday, US stock index futures trade modestly higher on the day. In the absence of high-impact macroeconomic data releases, the risk perception could impact the USD's valuation and drive EUR/USD's action ahead of the weekend.
A bullish opening in Wall Street could make it difficult for the USD to find demand. On the other hand, EUR/USD could turn south in case investors continue to price in a stronger probability of one more 25 basis points Federal Reserve rate hike before the end of the year.
EUR/USD Technical Analysis
EUR/USD dropped below 1.0570 (100-period Simple Moving Average (SMA), Fibonacci 23.6% retracement of the latest downtrend) and the Relative Strength Index (RSI) indicator on the 4-hour chart fell below 50, reflecting a bearish tilt in the short-term bias.
In case EUR/USD rises above 1.0570 and starts using that level as support, the pair could gather bullish momentum and target 1.0600 (psychological level, static level) and 1.0640-1.0650 (Fibonacci 38.2% retracement, 200-period SMA).
On the downside, supports are located at 1.0500 (psychological level, static level) and 1.0450 (end-point of the latest downtrend) if 1.0570 stays intact.
- EUR/USD stabilized near 1.0550 following Thursday's sharp decline.
- The pair could attract technical buyers if it manages to clear 1.0570.
- Risk perception could drive the USD's valuation ahead of the weekend.
EUR/USD stabilized at around 1.0550 early Friday after posting large losses on Thursday. The technical outlook points to a loss of bullish momentum but buyers could show interest if the pair manages to flip 1.0570 into support.
The renewed US Dollar (USD) strength forced EUR/USD to turn south in the American session on Thursday following the latest inflation figures.
The Consumer Price Index (CPI) in the US rose 3.7% on a yearly basis in September, the US Bureau of Labor Statistics reported. The annual Core CPI inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast. Assessing the underlying details of the report, "the Fed's 'supercore' (core services excluding home rent component) jumped 0.6% month-over-month, bringing the most recent three month annualized growth rate to 4.8% from 2.2% in August," said Nathan Janzen, Assistant Chief Economist at Royal Bank of Canada.
Euro price this week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.15% | 0.04% | 0.06% | 0.69% | 0.32% | 0.85% | -0.30% | |
| EUR | -0.17% | -0.11% | -0.11% | 0.53% | 0.16% | 0.71% | -0.44% | |
| GBP | -0.03% | 0.12% | 0.03% | 0.62% | 0.29% | 0.79% | -0.32% | |
| CAD | -0.04% | 0.11% | -0.01% | 0.65% | 0.27% | 0.80% | -0.34% | |
| AUD | -0.70% | -0.50% | -0.63% | -0.60% | -0.34% | 0.16% | -0.95% | |
| JPY | -0.33% | -0.17% | -0.29% | -0.25% | 0.32% | 0.49% | -0.62% | |
| NZD | -0.84% | -0.68% | -0.80% | -0.78% | -0.17% | -0.51% | -1.15% | |
| CHF | 0.26% | 0.44% | 0.32% | 0.35% | 0.94% | 0.60% | 1.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Early Friday, US stock index futures trade modestly higher on the day. In the absence of high-impact macroeconomic data releases, the risk perception could impact the USD's valuation and drive EUR/USD's action ahead of the weekend.
A bullish opening in Wall Street could make it difficult for the USD to find demand. On the other hand, EUR/USD could turn south in case investors continue to price in a stronger probability of one more 25 basis points Federal Reserve rate hike before the end of the year.
EUR/USD Technical Analysis
EUR/USD dropped below 1.0570 (100-period Simple Moving Average (SMA), Fibonacci 23.6% retracement of the latest downtrend) and the Relative Strength Index (RSI) indicator on the 4-hour chart fell below 50, reflecting a bearish tilt in the short-term bias.
In case EUR/USD rises above 1.0570 and starts using that level as support, the pair could gather bullish momentum and target 1.0600 (psychological level, static level) and 1.0640-1.0650 (Fibonacci 38.2% retracement, 200-period SMA).
On the downside, supports are located at 1.0500 (psychological level, static level) and 1.0450 (end-point of the latest downtrend) if 1.0570 stays intact.
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