FxNews – Wednesday saw the EURUSD struggling to maintain its strength above the 1.1000 level against the US Dollar, ultimately retreating to around 1.0990 as trading began in Europe. Conversely, the US Dollar, called the Greenback, is experiencing its challenges. It’s wavering about 102.70 despite recovering from earlier dips in the 102.50-102.45 range, as the USD Index (DXY) indicates.
The landscape of current monetary policy remains stable for now. However, there is growing speculation among investors about potential interest rate reductions by the Federal Reserve (Fed) and the European Central Bank (ECB) in the spring of 2024.
Attention in the Eurozone is now towards Germany’s forthcoming release of preliminary inflation data for November. Meanwhile, the spotlight is on several key economic indicators in the US. These include the advanced Q3 GDP Growth Rate, preliminary figures for Goods Trade Balance, and Mortgage Applications as monitored by the MBA. The day in North America will conclude with the publication of the Fed’s Beige Book.
Adding to this, Cleveland Fed’s Loretta Mester, a hawkish figure and 2024 voter, is scheduled to speak, potentially offering further insights into future economic policies.
EURUSD Technical Analysis
The EURUSD bears are currently testing the 1.096 support level. Simultaneously, the RSI indicator has moved out of the overbought area, yet a divergence is noticeable. The EURUSD’s direction is deemed bullish if the price remains above 1.0963.
On the other hand, should the EURUSD price fall below 1.0963, the bullish perspective will be paused. In this scenario, the market will likely test the pivot point, further supported by the lower band of the bearish channel.