EURUSD is trading sideways near 1.0550.
The EURUSD rose toward 1.0600 ahead of the weekend. But lost its positive momentum and ended the day essentially unchanged. Early Monday, the pair is trading sideways in a narrow band just above 1.0550. The near-term technical view indicates a lack of directional momentum. Although buyers are unwilling to gamble on a sustained Euro rebound unless the pair clears the 1.0570-1.0580 resistance level.
Germany’s growth and inflation figures will be included in the European economic calendar.
Markets anticipate a 0.7% annualized decrease in Germany’s economy in the third quarter. Germany will announce October inflation figures later in the day. The Consumer Price Index is expected to rise 3.6% year on year. Down from the 4.3% increase seen in September.
The European Central Bank (ECB) kept its benchmark interest rates steady. Despite the Eurozone’s weakening economic outlook. And mounting evidence of inflation slowing. Moreover markets are unlikely to rethink the ECB’s rate forecast unless German data indicate. An unexpected surge in CPI inflation in October.
“We have finished with the process of raising interest rates for now.” ECB policymaker Boris Vuji said in an interview with Croatian public radio HRT1 over the weekend.
Furthermore US economic calendar will not provide any data in the second half of the day. any high-tier data releases. Meanwhile, futures for US market indexes were last seen climbing between 0.3% and 0.7%. A strong start on Wall Street may damage the US Dollar. But investors may be hesitant to take substantial bets ahead of the Federal Reserve’s (Fed) monetary policy pronouncements on Wednesday.
EURUSD Technical Analysis
EURUSD may find severe resistance in the 1.0570-1.0580 range. Where the Fibonacci 23.6% retracement of the previous downturn, the 100-period SMA, and the 200-period SMA all intersect.
If the pair rises above this level and stabilizes there, the next positive targets might be 1.0640 (Fibonacci 38.2% retracement) and 1.0700 (psychological level, Fibonacci 50% retracement).
Moreover on the downside, temporary support is at 1.0530 (static level), followed by 1.0500 (psychological level) and 1.0450 (end-point).
