Key Points
- EUR/USD edges lower for the third consecutive day due to a strong US dollar ahead of next week’s US inflation data.
- It’s light on the economic data front this Thursday.
- A critical price level for the pair is 1.07096.
- Interest Rate differential is currently a major factor in the minds of investors.
EUR/USD Daily Price Analysis – 09/05/2024
The pair is set for its third straight losing day after Tuesday and Wednesday ended with a 0.2% loss. So far, on Thursday, the price has dropped by 0.18%.
The interest rate differential, which favors the Greenback, is now a major factor for investors to consider. The chances of the interest rate gap widening are very much on the table, with the ECB expected to cut rates as early as June while the Fed expected to leave theirs untouched until September.
Germany and France are having a day off to celebrate The Day of Ascension, which might taper volatility on Thursday. Across the Atlantic, not much is happening in the form of high-impact news. As such, investors would rather approach the pair with caution as they await an external catalyst to give them extra insight into both Central Banks’ potential next moves.
On the technical side, a bearish trendline originating from the 8th of March high perfectly sits above the price. The price seems to be continuing this trend after tapping the trendline and reversing. It had the same reaction after tapping the 500-day EMA.
EUR/USD Intraday Price Analysis – 09/05/2024
The EUR/USD has made a steady pullback to the upside after the strong downside push from the 9th of April to the 16th of April. So far, the price has risen past the halfway point of the impulsive downward move.
Relying on the Fibonacci Retracement tool to gauge potential supports and resistance levels, we see that the first critical level for any upside move is 0.5 (1.07431) fib level. Right above this fib level is the Wednesday high of 1.07576. Should the price cross this level, we may see more upside to the 0.618 (1.07766) fib level.
On the bearish side, the first challenge comes with the 1.07260 support level that sits between the 0.5 (1.07431) fib level and the 0.382 (1.07096) fib level. Lower below are 0.236 (1.06681).
Key Economic Data for the EUR/USD Pair – 09/05/2024
It’s light on the economic front this Thursday. Germany and France are shuttered for the Day of Ascension public holiday. In the United States, not much is happening in the form of high-impact news as well.
EUR/USD Key Fibonacci Price Levels – 09/05/2024
Based on the 1H chart, the key Fibonacci price levels for EUR/USD are these:
| Support | Resistance |
| 1.07096 | 1.07431 |
| 1.06681 | 1.07766 |
| 1.06011 | 1.08243 |
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