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EUR/USD Analysis: Trading May Remain in Narrow Ranges Due to U.S. Holiday

By Mahmoud Abdallah

Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of tra...

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EUR/USD Analysis Summary Today

  • Overall Trend: Neutral with a bullish bias. Support Levels for Today: 1.1630 – 1.1580 – 1.1500.
  • Resistance Levels for Today: 1.1740 – 1.1820 – 1.1900.

EUR/USD Analysis Today 01/09: Narrow Ranges (Chart)

EUR/USD Trading Signals:

  • Buy EUR/USD from the support level at 1.1590 with a target at 1.1800 and stop loss at 1.1500.
  • Sell EUR/USD from the resistance level at 1.1755 with a target at 1.1600 and stop loss at 1.1820.

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Technical Analysis of EUR/USD Today:

The EUR/USD rebounded higher, attempting to break resistance at 1.1700, supported by U.S. inflation data and tensions between Trump and Federal Reserve officials. The pair is trying to maintain most of its gains this year as markets assess global interest rate expectations and ECB policy amid growth slowdown concerns. According to recent economic calendar data, Germany’s inflation accelerated above expectations, surpassing 2%, while inflation in France, Italy, and Spain came in weaker at 0.8%, 1.7%, and 2.7% respectively. Overall, futures contracts suggest limited ECB rate cuts this year, although U.S. tariffs and weak growth still keep some expectations alive for potential cuts later in the year.

In the U.S., continued inflation and strong consumer spending in July highlight the challenge facing the Fed in cutting rates amid a weak labor market. According to forex trading platforms’ performance, the euro has gained 11% against the dollar so far this year, supported by European stimulus plans and U.S. financial uncertainty.

Will EUR/USD Rise This Week?

According to currency analysts, there are chances for EUR/USD to rise further if this week’s U.S. jobs data comes in weaker than expected, especially since markets are cautiously monitoring the Fed’s decision this month regarding a possible rate cut. Technically, the latest gains have pushed the RSI (14-day) toward 53, above the neutral line, while the MACD also confirms bullish momentum. However, bulls need more catalysts to fully confirm control, with the 1.1800 resistance break remaining the key signal.

Today's EUR/USD trading will react to the Federal Reserve's preferred US inflation reading, along with the Eurozone's manufacturing and services PMI readings. Currency traders will be monitoring whether the EUR/USD pair can reclaim the 1.17 level, as concerns about the Federal Reserve and political pressure on the central bank continue to undermine the US dollar's support.

Market sentiment toward the dollar remains negative as investors worry about U.S. political interference in the Fed, while political fears in the Eurozone have eased slightly. Today’s U.S. holiday may lower liquidity and affect trading performance.

Factors Affecting USD Trading:

According to forex experts, Fed policy and Trump’s pressure on the central bank remain key elements. For the September meeting, markets are pricing in an 85% probability of a rate cut. However, U.S. economic data has recently been slightly stronger than expected, reducing near-term aggressive selling pressure on the dollar. U.S. Q2 GDP was revised up to 3.3% annually from 3.0%, while initial jobless claims fell to 229,000 from 234,000 previously.

On the other front affecting currency exchange rates, political concerns in the eurozone have eased slightly, although significant tensions remain. The French government faces a confidence vote in the National Assembly on September 8, and if the outcome leads to unfavorable market outcomes, the door is open to further euro weakness. However, forex analysts view the situation with caution and warn that this is not a decisive moment for the euro, which will benefit from France's previous improved economic growth and strong support from the European Central Bank.

Trading Tips:

Traders recommend selling EUR/USD on every upward move, avoiding excessive risk, and closely monitoring market-moving factors until the Fed meeting later this month.

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Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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