Eurusd Trades With Bearish Bias

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Eurusd Trades With Bearish Bias

Eur/Usd Trades With Bearish Bias

EUR/USD is in red for the 5th session in a row and is now trading around 1.0550. In the process, EUR/USD has also refreshed its yearly lows on Thursday.

According to experts, the weak economic data from the Eurozone and the strength of the US Dollar are behind the downside of EUR/USD.

Eurozone'S Gdp To Remain Weak In Q3

Now, the EUR/USD traders are waiting for the release of the Eurozone's GDP data due later today. The forecast shows that the Q3 GDP will show a growth rate of 0.4% q/q.

Also, the GDP growth based on the y/y will be around 0.9% during the Q3. Overall, the region's GDP will remain suppressed.

Another key event is the ECB's Lagarde speech which will be delivered at the Choiseul Sovereignty Awards 2024. On the other hand, Fed Powell is also giving a speech at the Choiseul Sovereignty Awards 2024 event.

So, as far as the fundamental situation is concerned, it will be a busy week for the EUR/USD traders. Meanwhile, the DXY is trading at 106.60, with the next target at the 107.00 handle. The upside of the DXY is also supported by the rising bond yields.

If we talk about the technical situation, the odds are tilted in favor of the Euro. The nearest support for EUR/USD is seen at 10520, while the nearest resistance is seen at 1.0570.

Right now, the downside of the EUR/USD is due to a number of reasons. The first one is Dollar Strength, which was sparked by Trump's win. Additionally, the markets are avoiding the Euro as Trump is planning to impose heavy tariffs on the rest of the world, especially Europe.

Third but not least is the weak economic data coming out of the Eurozone. The GDP growth is weak, and the big economy 'Germany' is going through a political crisis.

There's a slim chance that EUR/USD might move higher due as a correction but it will be short lived.

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