EUR/USD Analysis Summary Today
- Overall Trend: : Remains neutral.
- Support Levels for EUR/USD Today: 1.1600 – 1.1550 – 1.1480.
- Resistance Levels for EUR/USD Today: 1.1685 – 1.1730 – 1.1800.
EUR/USD Trading Signals:
- Buy EUR/USD from the support level of 1.1570 with a target of 1.1800 and a stop-loss at 1.1490.
- Sell EUR/USD from the resistance level of 1.1760 with a target of 1.1600 and a stop-loss at 1.1810.
Technical Analysis of EUR/USD Today:
The bears quickly returned to the EUR/USD currency pair across trusted trading company platforms, breaking below the 1.1600 level again. This followed the Federal Reserve's quarter-point interest rate cut. However, the Dow Jones and S&P 500 indices declined after Fed Chairman Jerome Powell stated that there is still a heated discussion about whether to follow up today's rate cut with another. Powell added, "A further rate cut at the December meeting is not a foregone conclusion, quite the opposite. Monetary policy is not on a preset course."
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Future of US Interest Rates
In this regard, the Federal Reserve's decision on US interest rates has sparked opposition from both sides, with one side calling for further rate cuts and the other advocating for keeping rates higher. President Trump, who has repeatedly called for faster U.S. interest rate cuts, again criticized Powell ahead of Wednesday's decision, saying the administration would be "very happy" to see his term end.
Trump spoke from South Korea, where both sides said they were close to finalizing a trade deal—marking progress after months of thorny talks over a $350 billion investment pledged by Seoul to the US. In this context, the US President is scheduled to meet with Chinese leader Xi Jinping in South Korea tomorrow, and investors hope this meeting will pave the way for NVIDIA to regain access to the Chinese market.
Meanwhile, across stock trading company platforms, NVIDIA's stock jumped, making it the first company to reach a market capitalization of $5 trillion. Booming sales of the company's flagship AI chip were crucial to this surge.
Overall, Fed Chairman Jerome Powell's comments about the December rate-setting meeting—which will be held in six weeks—went far beyond the usual disavowal that Fed decisions are not on a preset course. Instead, his comments revealed a broader discomfort among at least some of his colleagues with the unrealistic investor expectation that a December rate cut is guaranteed. Powell said: "It may be time for some Committee members to step back a little and see if there are actually downside risks to the labor market." Powell added that this week's meeting revealed a "growing chorus" of policymakers who are asking: "Maybe we need to wait a while."
In the past, Powell has tried to deflect questions about upcoming policy decisions by refocusing attention on the policy actions at that particular meeting.
Technical Analysis for the EUR/USD Pair
Based on the daily chart trading, the EUR/USD bears have gained momentum to push the currency prices lower. This is confirmed by the 14-day Relative Strength Index (RSI) being stable around a reading of 47, below the neutral line, and having more time to head toward stronger downward levels before reaching oversold territory. In the same performance, the MACD indicator is steadily leaning downwards. The bears' focus is directed towards the support levels of 1.1590 and 1.1480 first.
The current downward bias for EUR/USD is anticipating important events, led by the announcement of the European Central Bank's (ECB) monetary policy decisions at 16:15 Cairo time, followed by statements from ECB Governor Lagarde half an hour after the bank's decision is announced. Before that, the German economic growth reading will be announced at 12:00 PM Cairo time, and the Eurozone economic growth reading will be announced at 1:00 PM Cairo time. On the US side, no important data releases are expected today.
Conversely, as we mentioned before, the success of the EUR/USD bull scenario remains contingent on a return to the 1.1800 resistance level. Otherwise, the downward trend will continue until further notice.
Trading Advice:
We still advise selling the EUR/USD pair on any strong upward retracement, but never take unnecessary risks.
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