Daily Technical Analysis EUR/USD: Rises Above 1.06 but Remains Near Yearly Lows
The EUR/USD pair resumed its downward trajectory on Tuesday, shedding another third of a percentage point. It briefly tested levels slightly below 1.0600 during the day, signaling persistent bearish sentiment. This marks an ongoing seven-week decline from its multi-month peak just above 1.1200 in September.
Market Dynamics
The absence of significant economic data from the European Union has left the euro vulnerable to dollar strength. However, traders are now looking ahead to Thursday’s release of Eurozone Gross Domestic Product (GDP) figures for Q3. Expectations are for a 0.4% quarter-over-quarter growth, consistent with preliminary estimates, and a 0.9% year-over-year expansion.
On the U.S. side, the release of October’s Consumer Price Index (CPI) on Wednesday is expected to draw significant market attention. Analysts predict an increase in headline CPI inflation to 2.6% year-over-year, up from September’s 2.4%. Core CPI inflation is anticipated to remain steady at 3.3%.
EUR/USD Daily Technical Analysis for November 13th:
The EUR/USD remains under bearish pressure, trading well below the 50-day (1.0895) and 200-day (1.0888) exponential moving averages (EMAs). These moving averages now act as resistance, reinforcing the downtrend. The alignment of the shorter-term EMA beneath the longer-term EMA signals sustained bearish control over the market.
Key Support Levels:
- 1.0600: A critical psychological level that may temporarily slow the decline.
- 1.0500: If the 1.0600 level breaks, this area could serve as a more robust support zone, potentially attracting fresh buying interest.
Resistance Levels:
- 200-day EMA (1.0888): A significant barrier that bulls need to overcome to shift the sentiment.
- 50-day EMA (1.0895): Reinforces bearish dominance and aligns with immediate resistance zones.
Market Outlook:
The overall technical structure points to a continuation of bearish momentum in the short term. While a bounce towards the 200-day EMA at 1.0868 is plausible if interim support at 1.0665 stabilizes, the prevailing sentiment suggests further downside risks.
