Eurusd Refreshes Ten Week Lows

Eurusd Refreshes Ten Week Lows by Andrew Blumer last updated on October 30, 2024

Eur/Usd Refreshes 10-Week Lows Ahead Of Ecb Rate Cut

EUR/USD is sitting at 10-week lows on Monday and has started the new week on a bearish note. The Euro has almost almost 0.25% of its value against the US Dollar and is now near the 200-EMA.

The bottom line is that the Euro is weakening across the board while the US Dollar is gaining strength. Up ahead, the ECB Lending survey results will be due on Tuesday as the investors will be paying close attention to the baking sector's health.

Ecb Expected To Cut Rates By 0.25%

Final European HICP data is also due on Thursday, but it will not be a high-volatility event as all eyes are on the ECB. The European Central Bank is expected to go ahead with a 25 bps rate cut on Thursday. It seems the upcoming rate cut by the ECB is yet another reason behind the subdued performance of the Euro.

On the USA side, the US retail sales are due on Thursday, with a forecast of 0.3% m/m in September. If this turns out to be true, it would be a big change from August's reading of 0.1%.

The technical chart of EUR/USD shows that bearish pressure remains dominant as the pair is near the 200 EMA. It seems that the pair is now moving towards the 1.0900 handle.

It seems that the EUR/USD has lost almost 3% if we look at its price during September. At that time, it was trading above 1.1200.

According to experts, the price action near the 200 EMA will determine the next direction of the EUR/USD. A break of this important level will invite more downside with the support around 1.0850.

On the flip side, a successful defensive near the 200 EMA will send the EUR/USD towards the 1.09063. After that, the next resistance will be offered by the 50 EMA on the D1 chart.

In the short-term, the EUR/USD trend remains bearish provided that the pair trades below the 50 EMA.