Today, EUR/USD has dropped by -0.17% amidst improving global equity market sentiment.
Key Points
- EUR/USD fell by -0.18% yesterday due to mixed Eurozone data.
- No high-impact economic releases today; unexpected news may affect the pair.
- Technical analysis shows a bearish trend, with the price below the 200 EMA.
EUR/USD Daily Price Analysis – 07/08/2024
On Tuesday, EUR/USD fell by -0.18%, closing at 1.09314. The pair experienced downward pressure primarily due to mixed economic data from the Eurozone. German factory orders exceed
ed expectations with a significant rebound of 3.9% in June, compared to the anticipated 0.4%. However, this positive data was countered by a decline in Eurozone retail sales, which fell by 0.3% following a 0.5% rise in the previous month.
Today, EUR/USD opened at 1.09279 and is currently trading at 1.09123, reflecting a -0.17% decline. The pair’s retreat aligns with a broader market reaction to improving sentiment in global equities, following substantial rebounds in major indices like the Dow Jones and S&P 500. This positive shift in equity markets has tempered the demand for the Euro, contributing to its current lower levels.
Today’s price action is influenced by broader macroeconomic factors, including recent volatility in the USD/JPY pair. Comments from BOJ Deputy Governor Shinichi Uchida, advocating for maintaining current levels of monetary easing, contrasted with earlier hawkish remarks from Governor Kazuo Ueda. This divergence has led to significant fluctuations in the yen and indirectly affected EUR/USD dynamics.
Key Economic Data and News to Be Released Today
While there are no high-impact economic releases today, traders should remain alert to any unexpected news or comments from key financial figures that could influence market movements. Market participants are particularly sensitive to any developments in U.S. economic data or further comments from Federal Reserve officials, which could shift USD sentiment and impact the EUR/USD pair.
EUR/USD Technical Analysis – 07/08/2024
The overall trend appears to be bearish, as evidenced by the position of the price relative to the 200 EMA and the recent lower highs and lower lows pattern. Also, the RSI is around 41.43, suggesting that the pair is neither overbought or oversold. This neutral reading implies a lack of strong momentum in either direction.
In the short term, the market is likely to continue its bearish trend unless significant buying pressure pushes the price above the resistance levels. If the price breaks below the immediate support at 1.09065, it could move towards the next support level at 1.08961. Continued bearish momentum might push it further down to S3 at 1.08735.
EUR/USD Fibonacci Key Price Levels 07/08/2024
Short-term traders planning to invest in EUR/USD today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 1.09101 | 1.09554 |
| 1.08961 | 1.09694 |
| 1.08735 | 1.09921 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
