Created
: 2025.01.06
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
EUR/USD Price Forecast: The path of least resistance is to the downside near 1.0300
World FX news
Breaking news
EUR/USD Price Forecast: The path of least resistance is to the downside near 1.0300
New
2025.01.06 14:27
2025.01.06 14:27
2025.01.06 14:27
- EUR/USD drifts lower to around 1.0315 in Monday's early European session.
- The negative view of the pair prevails below the 100-day EMA with the bearish RSI indicator.
- The initial support level is seen at 1.0267; the immediate resistance level to watch is 1.0458.
The EUR/USD pair weakens to near 1.0315 during the early European session on Monday. The expectation that the European Central Bank (ECB) will further cut the interest rate this year undermines the Euro (EUR) against the Greenback. Later on Monday, investors will take more cues from the Eurozone HCOB Composite Purchasing Managers' Index (PMI) and the preliminary reading of German Consumer Price Index (CPI) data for December.
Technically, the bearish outlook of EUR/USD remains in play as the major pair remains capped below the key 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which is located below the midline around 35.90, suggesting that the path of least resistance is to the downside.
The lower limit of the Bollinger Band at 1.0267 acts as an initial support level for the major pair. A decisive break below the mentioned level could expose the 1.0200 level. Further south, the next contention level is seen at 1.0160, the low of August 8, 2022.
On the bright side, the first upside barrier for EUR/USD emerges at 1.0458, the high of December 30. Sustained trading above this level could pave the way to 1.0550, the upper boundary of the Bollinger Band. Extended gains could see the next hurdle at 1.0663, the 100-day EMA.
EUR/USD daily chart
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB's primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates - or the expectation of higher rates - will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB's 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone's economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Last updated
: 2025.01.06
Related articles
Fed's Barkin: Lack of fiscal space is a risk for future recessions
27 minutes agoUS Dollar ticks higher as Gilts wobble under inflation pressure, eyes on NFPs
34 minutes agoMexican Peso dives as Banxico signals aggressive easing
53 minutes agoGBP/JPY backslides on data-light Thursday
2025.01.10 02:31Canadian Dollar continues slow grind lower on Thursday
2025.01.10 02:09BoE's Breeden: Some evidence of activity weakening, but we expect it to pick up again
2025.01.10 02:01
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Fed's Barkin: Lack of fiscal space is a risk for future recessions
Federal Reserve (Fed) Bank of Richmond President Tom Barkin noted on Thursday that even though consumer debt ratios are in an overall better place than they were in years past, the Fed is facing some key difficulties looking forward to future downturns unless space on the central bank's books opens up.
New
2025.01.10 03:18US Dollar ticks higher as Gilts wobble under inflation pressure, eyes on NFPs
The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, ticks up on inflation woes, with the Greenback consolidating at current levels.
New
2025.01.10 03:10Mexican Peso dives as Banxico signals aggressive easing
The Mexican Peso loses some ground against the US Dollar on Thursday after the Banco de Mexico (Banxico) hinted that interest rates could be reduced faster in some meetings.
New
2025.01.10 02:52GBP/JPY backslides on data-light Thursday
GBP/JPY took another leg lower on Thursday, falling to it's lowest prices in almost a month and coming within touch range of the 200-day Exponential Moving Average (EMA).
New
2025.01.10 02:31Canadian Dollar continues slow grind lower on Thursday
The Canadian Dollar (CAD) chalked in a third straight losing day against the US Dollar on Thursday, falling for a third straight day and highlighting the Loonie's ability to lose ground against the Greenback even when US markets aren't open.
New
2025.01.10 02:09BoE's Breeden: Some evidence of activity weakening, but we expect it to pick up again
Bank of England (BoE) Monetary Policy Committee (MPC) member and Deputy Governor for Financial Stability Sarah Breeden noted that it might finally be time for the BoE to start loosening policy rates now that UK economic data has effectively begun to crumble.
New
2025.01.10 02:01GBP/USD faces downward pressure due to UK fiscal concerns
The Pound Sterling depreciated against the Greenback on Thursday, even though the financial markets remained closed due to former US President Jimmy Carter's funeral.
New
2025.01.10 00:54EUR/USD Price Analysis: Extended losing streak tests bullish recovery
The EUR/USD pair continued its downtrend on Thursday, edging 0.18% lower to trade around 1.0305.
New
2025.01.10 00:48NZD/USD Price Forecast: Walks on thin rope near 0.5600
The NZD/USD pair rises slightly after posting a fresh more-than-two-year low of 0.5570 in Thursday's North American session but is still down quarter-to-a-percent.
New
2025.01.09 23:22Fed's Harker: Fed still on rate-cut path, future moves driven by data
Philadelphia Federal Reserve President Patrick Harker said on Thursday that the US central bank is still expected to continue to cut rates but explained that the path will depend on data, per Reuters.
New
2025.01.09 23:13Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
