The EUR/USD pair holds onto slight daily gains throughout Wednesday’s American session, trading at about 1.0650. Despite a little uptick in risk sentiment, the US dollar struggles to gain traction and supports the pair’s stability.
EUR/USD Technical Overview
The EUR/USD pair’s daily chart indicates a limited bullish potential. The 20 Simple Moving Average (SMA) is rushing southward below the longer moving averages as the pair continues to trade far below bearish ones. Simultaneously, technical indicators have slightly recovered from oversold levels, but not sufficiently to suggest that a further upswing is imminent.
The 4-hour chart indicates that bears are still in charge in the near term. A bearish 20 SMA was momentarily broken by EUR/USD, but it has now fallen below the signal. The 100 and 200 SMAs, on the other hand, continue to show persistent selling interest by maintaining their bearish slopes well above the shorter one. Lastly, technical indicators started to decline again within negative ranges, indicating that there may be one more leg down, especially if the pair breaks through the 1.0600 barrier.
Levels of support: 1.0600, 1.0570, 1.0530
Levels of resistance: 1.0665, 1.0700, 1.0745
Fundamental Overview
On Wednesday, the gloomy market sentiment somewhat subsided as the EUR/USD pair traded at familiar levels. The US Dollar experiences slight intraday losses vs its main competitors as the stock markets reversed course and continued to rise. On the one hand, it appears that market players have realized that rate reductions in the US are quite unlikely. Conversely, ongoing hostilities in the Middle East keep the financial markets on the defensive.
According to Mohammed bin Abdulrahman bin Jassim Al Thani, the prime minister of Qatar, talks between Israel and Hamas to achieve a truce in Gaza and the release of hostages have halted. Furthermore, Israel’s war cabinet is currently debating the best course of action, but it is resolved to counter Iran’s onslaught from the previous weekend.
In terms of data, the Eurozone verified that the core annual reading was 2.9% and the previously estimated March Harmonized Index of Consumer Prices (HICP) was 2.4%. Speaking at the American session will be Christine Lagarde, President of the European Central Bank (ECB), along with a number of Federal Reserve (Fed) executives.