Daily Forex Analysis – EUR/USD struggles and AUD/USD rises. - 12 Sep 2024
Introduction
Global currency pairs are seeing mixed movements as traders await key economic data and central bank decisions. EUR/USD holds near a multi-month low ahead of the ECB meeting, while GBP/USD remains under pressure despite a slight rebound. Meanwhile, USD/CHF weakens, and AUD/USD gains on improved risk sentiment.Markets In Focus Today – EUR/USD
EUR/USD hangs near multi-month low, defends 1.1000 mark ahead of ECB meeting.The EUR/USD pair is struggling to gain significant momentum during Thursday’s Asian session, remaining confined to a narrow range just above the key 1.1000 psychological level, which also marks a four-week low reached the previous day. Traders appear cautious, opting to wait for the highly anticipated European Central Bank (ECB) policy meeting before making any decisive moves. The ECB is broadly expected to reduce interest rates by 25 basis points, driven by indications of easing inflation within the Eurozone. This outlook was reinforced by recent data showing Germany’s Consumer Price Index (CPI) dropped to its lowest level in over three years in August, aligning with the ECB’s 2% inflation target. Consequently, the euro faces downward pressure, further hindered by modest strength in the US Dollar (USD). Investors are likely waiting for the ECB’s updated economic forecasts, as well as comments from ECB President Christine Lagarde, which will shape the Euro’s future direction. Additionally, the release of the US Producer Price Index (PPI) could provide fresh momentum for the EUR/USD pair, potentially generating trading opportunities later in the North American session.
Technical Overview With Chart :
Moving Averages :
Exponential :
- MA 10 : 1.1048 | Negative Crossover | Bearish
- MA 20 : 1.1046 | Negative Crossover | Bearish
- MA 50 : 1.0981 | Positive Crossover | Bullish
- MA 10 : 1.1051 | Negative Crossover | Bearish
- MA 20 : 1.1087 | Negative Crossover | Bearish
- MA 50 : 1.0966 | Positive Crossover | Bullish
Stochastic Oscillator : 6.32 | Sell Zone | Neutral
Resistance And Support Levels :
- R1 : 1.1170 R2 : 1.1271
- S1 : 1.0847 S2 : 1.0746
Trade Suggestion: Limit Sell : 1.1035 | Take Profit: 1.0949 | Stop Loss: 1.1100
