The EUR/USD currency pair is currently consolidating within a limited trading range, demonstrating a lack of directional momentum after Tuesday’s indecisive action. The pair ended the day just under the 1.0500 level, failing to establish a clear trend as market participants await key economic data from the United States.
On Tuesday, EUR/USD dipped below 1.0450 before recovering during the US trading session. The mixed economic indicators from the US, combined with a slight improvement in market sentiment, diminished demand for the US Dollar (USD). As a result, market focus is now shifting toward upcoming vital economic releases that could influence the pair’s movement.
The US Bureau of Economic Analysis is set to publish its second estimate of third-quarter Gross Domestic Product (GDP) growth, along with the Personal Consumption Expenditures (PCE) Price Index for October. Investors are anticipating a 0.3% increase in the core PCE index, which aligns with September’s figures. Should the data meet or exceed expectations, the USD may gain immediate support. Conversely, any readings falling short of predictions could weigh on the USD, potentially allowing EUR/USD to rise further.
In addition to the GDP and PCE data, the US economic calendar also includes important releases such as the weekly Initial Jobless Claims and Durable Goods Orders figures for October. These reports are crucial as market participants try to gauge the overall economic landscape ahead of the Thanksgiving holiday, making the valuation of the USD more complex.
From a technical perspective, EUR/USD faces its first significant resistance at 1.0520, coinciding with the upper limit of the descending regression channel and the 50-period Simple Moving Average (SMA). Should the pair break through this resistance and establish it as support, the next targets may be 1.0570 and 1.0600. On the downside, immediate support can be found at 1.0480, with further levels at 1.0430 and 1.0400.
