The EUR/USD currency pair has dipped below the 1.0900 le for the first time since early August, marking a shift in market sentiment. On Tuesday, there are no substantial economic data releases scheduled from the United States, with 1.0870 emerging as the next key support level for the pair.
Following a subdued market opening at the start of the week, the EUR/USD experienced a slight decline during the American trading session on Monday, closing in negative territory. On Tuesday morning, the pair was unable to recover, trading at its lowest point since early August, just beneath the 1.0900 threshold.
The lack of high-impact macroeconomic data contributed to a cautious market environment, allowing the US Dollar (USD) to maintain its strength against other major currencies. As a result, the EUR/USD pair moved lower. Concurrently, US stock index futures opened marginally down, indicating that investor sentiment has yet to see improvement.
In the European trading session, Eurostat is set to release Industrial Production figures for August, while Germany’s ZEW economic research institute will provide sentiment data for the Eurozone and Germany. The ZEW Economic Sentiment Index is projected to see an increase for both regions. Should these figures exceed expectations, they could offer support for the EURO . However, it is anticipated that traders will remain cautious, particularly with the European Central Bank’s impending policy announcements expected later in the week.
Later in the day, the only notable US data release will be the Empire State Manufacturing Index for October, although no significant market fluctuations are expected from this report.
From a technical perspective, the 4-hour chart’s Relative Strength Index (RSI) has shown a slight uptick after touching a low of 30, indicating a possible but limited corrective shift in the bearish outlook for EUR/USD . Key support levels are identified at 1.0870, with additional levels at 1.0800 and 1.0780. Conversely, if the pair manages to reclaim and maintain the 1.0900 level as support, potential resistance at 1.0950 and 1.1000 could come into play.
