Skip to content
Risk warning: Our products are leveraged and carry a high level of risk, which can result in the loss of your entire capital. Such products may not be suitable for all investors. It is crucial to understand the risks involved fully.
  • Support
  • For Institutionals
  • Trading

    Trading Platforms

    • MetaTrader 4 Terminal
    • MetaTrader 5 Terminal
    • PAMM Accounts
    • Equinix Trading Server

    Markets coverage

    • Forex Currencies
    • Spot Metals
    • Commodities

     

    • CFDs on Stocks
    • Indices
    • CFDs on Crypto

    Start Trading

    • Standard Accounts For individuals
    • Institutional Account For professionals
    • Deposits & Withdrawals
  • Conditions

    Trading Conditions

    • Spreads Overview
    • Swap-Free
    • Leverage Information

     

    • CFD Specifications
    • Full Trading Conditions

    Invest on your terms

    Transparent pricing, reduced trading costs, and leverage that adapts to your strategy.

    Explore conditions
  • Tools
    • Weekly Outlook
    • Daily Technical
    • Market Commentary
    • Economic Calendar
    • Blog
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
  • Trading
    • Markets Coverage
    • MetaTrader 5 Platform
    • MetaTrader 4 Platform
    • Standard Accounts
    • Institutional Account
    • PAMM Accounts
    • Equinix Trading Server
    • Deposits & Withdrawals
  • Conditions
    • Spreads Overview
    • Leverage Information
    • Swap-Free Trading
    • CFD Specifications
    • Full Trading Conditions
  • Tools
    • Daily Technical
    • Weekly Outlook
    • Market Commentary
    • Economic Calendar
    • Blog
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
  • Client Portal
  • Open Account
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
Open Account
Client Portal
Analysis, Daily Technical

Daily Technical Analysis EUR/USD: The Pair Extends Decline Ahead of ECB Rate Decision

October 16, 2024 OnEquity

The EUR/USD pair continued its bearish trend on Tuesday, dropping about one-fifth of a percent and sliding below the 200-day Exponential Moving Average (EMA). The price closed below the 1.0900 level for the first time since early August. The pair is now down nearly 3% from its late September highs, which were just above the 1.1200 level.

European banks have generally reported negative impacts following the European Central Bank’s (ECB) summer rate cut. While lending standards have remained broadly unchanged and even eased for household lending, consumer credit conditions remain tight. The rebound in demand for housing loans is based solely on the expectation of further rate cuts, which means consumers are over-leveraged in the short term. Additionally, EU banks’ net interest income, due to the ECB’s policy rate decisions, has turned negative for the first time since 2022.

At a broad level, the ECB is expected to announce a quarter-point cut to the main deposit rate in its next decision on Thursday. Markets widely anticipate a 25-basis-point rate cut, with the ECB’s main refinancing rate also expected to be reduced by nearly 25 basis points to around 3.4%, down from 3.65%.

In addition to the ECB’s decision, Thursday’s session will include the release of U.S. retail sales data for September. U.S. retail sales are expected to show a 0.3% month-over-month increase, up from 0.1% in the previous month.

However, despite the euro’s weakness against the U.S. dollar and the anticipated downward momentum, it’s worth noting that the U.S. dollar has recently been losing steam. The U.S. side of the equation, which has undoubtedly been the dominant force in the currency pair’s decline, should not be overlooked. In fact, the U.S. dollar rebounded in October as markets adjusted their expectations for interest rate cuts in 2024, following stronger-than-expected U.S. economic data. Clearly, the U.S. economy does not require an urgent pace of rate cuts. Moreover, the delay in rate cuts has boosted U.S. bond yields and strengthened the dollar.

EUR/USD Daily Technical Analysis for October 16th

The EUR/USD exchange rate is expected to test the 200-day moving average as sellers anticipate Thursday’s ECB rate cut. The expectation of further ECB action has pushed the EUR/USD pair below the 1.10 level, with the next key target being the 200-day moving average at 1.08736.

There is a high likelihood that this level will be tested sometime before the end of October. From this expected support level, technical indicators could begin to move toward oversold territory. On the daily chart, the most significant support will be found at the 1.0775 level. Conversely, within the same time frame, the current bearish channel would not be broken without a return to the vicinity of the 1.1070 resistance level.

EUR/USD chart
  • Analysis
  • Dollar
  • Euro
  • Technical

Post navigation

Previous
Next

Search

Categories

  • Analysis (228)
  • Beginner (26)
  • Cryptos (150)
  • Currencies (196)
  • Daily Market Watch (6)
  • Daily Technical (152)
  • Education (67)
  • Expert (23)
  • Intermediate (18)
  • Markets (464)
  • News & Releases (22)
  • Stocks (308)
  • Uncategorized (1)
  • Weekly Outlook (73)

Recent posts

  • Outlook for the Week of August 25 – 29
  • Japan’s finance minister supports cryptocurrencies as portfolio diversifiers
  • Today’s Stocks to Watch: Intel, Disney, and PDD

Tags

Analysis Beginner Bitcoin Cardano company news Crypto Cryptocurrencies Currencies Daily daily market watch Dollar Education Elections ETF ETFs Ethereum Euro Fed Index inflation Japan market commentary Markets oil Outlook Pound Ripple SEC Solana Stablecoin Stock Market Stocks Stocks Market Stocks today Technical Technical Analysis Technology Tether Trading Trump Wall Street Weekly Weekly Outlook Yen Yuan

Related posts

Analysis, Weekly Outlook

Outlook for the Week of August 25 – 29

August 26, 2025 OnEquity

The week of August 25–29 will be pivotal for global markets, with investors closely watching U.S. GDP and PCE inflation data as expectations for Fed rate cuts adjust following stronger dollar momentum and Powell’s Jackson Hole remarks. In Europe, preliminary CPI figures from Italy, France, and Germany will help shape the ECB’s policy outlook, while […]

Currencies, Markets

Dollar rises marginally prior to the Fed minutes; the pound sterling gains ground following the CPI increase

August 20, 2025 OnEquity

The U.S. dollar edged higher on Wednesday as traders looked ahead to the release of the Federal Reserve’s July meeting minutes, followed by the annual Jackson Hole symposium, both expected to provide fresh signals on the central bank’s monetary policy outlook. At 04:55 ET (08:55 GMT), the Dollar Index, which tracks the greenback against six […]

Currencies, Markets

Dollar Falls Modestly Ahead of Jackson Hole, Euro Gains Momentum

August 19, 2025 OnEquity

The U.S. dollar edged lower Tuesday, giving back early gains as caution prevailed following the White House summit on Ukraine. At 04:40 ET (08:40 GMT), the Dollar Index, which measures the greenback against six major peers, slipped 0.1% to 97.920 after modest overnight gains. Dollar Trades in Narrow Range U.S. President Donald Trump assured President […]

  • Privacy policy
  • Client agreement
  • Legal
  • Support
  • +2484671965
  • [email protected]
  • Chat with us
Company
  • About us
  • Regulation
  • Safety of funds
  • Company news
  • Blog
  • FAQ
Account options
  • Standard accounts
  • Institutional account
  • PAMM accounts
  • Swap-free account
Conditions
  • Spreads overview
  • Leverage tiers
  • CFD specifications
  • Markets coverage
Trading tools
  • MetaTrader 5
  • MetaTrader 4
  • Equinix trading server
  • Economic calendar
  • Daily technical
  • Weekly outlook
  • Market commentary
OnEquity Ltd is incorporated in Seychelles as a Securities Dealer with License No. SD154, authorized by the Seychelles Financial Services Authority (FSA), adhering to the Consolidated Securities Act, 2007. Registration No. 810588-1.

The website is operated and provides content by the OnEquity group of companies, which include:

OnEquity SA (Pty) Ltd, incorporated in South Africa, Company reg. 2021/321834/07, regulated by the Financial Sector Conduct Authority (FSCA) with FSP No. 53187.

OnEquity LLC, recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020.

ONEQ Global Ltd, registered in Cyprus, Company reg. HE 435383, located at Agias Zonis 22, Limassol, focusing on comprehensive service solutions within the OnEquity Group.
Risk Disclosure: Trading in financial instruments involves substantial risk and may not be suitable for all investors. The value of investments is volatile and can result in total loss of capital. Investors should consider their financial situation, investment experience, and risk tolerance, and may seek professional advice. Past performance is not indicative of future results.

Eligibility: Services are available to individuals 18 years or older.

Restricted Jurisdictions: The content provided by OnEquity is not intended for residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, Syria, or any jurisdiction where such distribution or use would be contrary to local law or regulation.

All trademarks™ and brand names belong to their respective owners and are used here for identification purposes only. Use of these names does not imply endorsement.
© OnEquity. All Rights Reserved.