- The EUR/USD pair edged lower on Tuesday, as traders prepare for a busy second half of the week.
- EU retail sales and US PMIs on Wednesday’s agenda.
- The US NFP will be published on Friday.
The EUR/USD pair is trying to build a bottom on Tuesday, down just 0.18% for the day’s session, while Euro (EUR) bulls try to find a foothold ahead of Wednesday’s data. The pair is trading near 1.0470, while Dollar support remains elevated.
The Production Price Index (PPI) and Retail Sales for August will be published early on Wednesday; The annualized EU PPI for August is expected to sharpen its contraction from -7.6% to -11.6%, while retail sales for the same period are also expected to decline, from -1% to -1.2% .
US services Purchasing Managers’ Index (PMI) figures will also be released on Wednesday, with the September PMI expected to decline slightly from 54.5 to 53.6.
The European Central Bank (ECB) is firmly out of its rate-hiking cycle, and Markets generally expect no significant rate hikes from the ECB in the foreseeable future.
As for the US, the Federal Reserve (Fed) is seeing inflation moderating in the US domestic economy, but only slightly, and any rebound in price growth data could lead the Fed to further rate hikes in the future.
With the rate differential between the Euro and the US Dollar rising, the current trend could be the strength of the Dollar against the Euro.
EUR/USD Technical Outlook
The Euro remains well off the year’s highs, down more than 7% from July’s high near 1,275, as the EUR/USD pair continues its trend decline toward parity.
The descending trend line from the year’s highs remains firm, and prices continue to fall well below the 200-day SMA near 1.0825.
The EUR/USD pair still sits above the 2002 lows, just north of 0.9500, but there is little technical resistance left if short sellers are able to push the euro further toward lows the pair hasn’t seen in more. of twelve months.
EUR/USD Daily Chart
EUR/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
