The EUR/USD currency pair is currently trading within a narrow range near the 1.0800 level, having experienced slight losses recently. Potential support for the pair is anticipated around the 1.0750 level. The strength of the US Dollar has contributed to these small declines in the absence of major economic data, with the pair fluctuating just below the 1.0800 level. Should this level be confirmed as resistance, technical traders may see opportunities to push the pair lower.
Market sentiment remains cautious, allowing the US Dollar to maintain its strength, which is hindering any significant rebounds in the EUR/USD . Comments from European Central Bank President Christine Lagarde have not provided sufficient support for the EURO . Lagarde remarked that while inflation figures in the Eurozone appear “relatively reassuring,” she cautioned against prematurely concluding that the issue is resolved. She expressed hope for inflation to return to target levels sooner than previously anticipated.
Lagarde is set to address the European economic outlook at the 2024 Annual Meetings of the International Monetary Fund and the World Bank Group. If her commentary highlights deteriorating growth prospects, it could further diminish investor interest in the EURO . Alongside this, data on Existing Home Sales in the US for September will be released, although this is not expected to provoke significant market movement. A later release of the Federal Reserve’s Beige Book could also offer insights into the economic landscape.
From a technical perspective, the EUR/USD remains within a descending regression channel that has been in place since late September. The Relative Strength Index (RSI) indicates that there might still be potential for additional declines before the pair reaches technically oversold levels. The pivotal level at 1.0800 must be confirmed as resistance, with the next bearish target tracking towards 1.0750 and possibly 1.0670. Conversely, any upward movement could face resistance at 1.0830, followed by 1.0870 and the round level of 1.0900.
