The EUR/USD pair is trading lower, influenced by a stronger US Dollar and concerns about the Eurozone economy.
Key Factors:
- US Inflation: The US Consumer Price Index (CPI) data showed a faster-than-expected increase in inflation, which could lead to further Fed rate hikes.
- Eurozone Economic Outlook: The Eurozone economy is facing headwinds, with Germany’s economic growth expected to decline.
- ECB Monetary Policy: The European Central Bank (ECB) is expected to cut interest rates further, but the pace of cuts may be slower than previously anticipated.
Technical Analysis:
- Downward Trend: The EUR/USD pair is in a downward trend, with potential for further declines.
- Support Levels: The 1.0900 level is a key support level, with potential for further support at the 200-day EMA.
- Resistance Levels: The September 11 low of 1.1000 and the 20-day EMA at 1.1090 are potential resistance levels.
Overall Outlook:
The EUR/USD pair is likely to remain under pressure, influenced by economic factors and monetary policy decisions. Traders should monitor technical indicators for signs of a trend reversal.