EURUSD on Monday dropped -0.15% to 1.09086. What we know.

EURUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.15%	-16.8 Pips
Week to-date	-0.15%	-16.8 Pips
October	-2.05%	-228 Pips

Upcoming key events (London Time)

  Tue 09:00 AM EUR Euro area Bank Lending Survey

What happened lately

The start of the trading week saw the EURUSD experiencing a slight dip, with a -0.15% decrease bringing the currency pair to 1.09086 at the end of Monday. Despite the absence of significant economic news that might have contributed directly to this downward movement, market participants are nonetheless preparing for forthcoming economic events that could influence future trading sessions. The decline might be attributed to ongoing market sentiment and investor positioning ahead of these anticipated announcements within the euro area.

On Tuesday, at 09:00 AM, economic attention will turn to the Euro area as the high-impact Euro Area Bank Lending Survey is scheduled to be released. This survey provides vital insights into the banking sector, which may reveal critical trends about credit conditions, loan demands, and overall economic health within the euro area. Given the survey’s high impact classification, any unexpected results could lead to significant movements in the euro’s value against other currencies, including the USD.

Considering the current forex market dynamics, the anticipated Euro Area Bank Lending Survey could affect EURUSD rates in various ways. Should the survey indicate stable or improving lending conditions, it could boost confidence in the euro, potentially reversing the downward trend experienced on Monday. Conversely, if the survey reveals tighter credit conditions or a significant drop in lending demand, investors might interpret this negatively, further weighing on the euro and potentially leading to more losses against the USD. Therefore, traders and investors will be closely monitoring these results, as they could dictate the EURUSD trajectory for the remainder of the week.

What can we expect from EURUSD today?

EURUSD on Monday dropped -0.15% to 1.09086. Price is below 9-Day EMA while Stochastic is falling in oversold zone.

Updated daily direction for EURUSD looks bearish as the pair posted lower in Monday trading session.

Looking ahead for the day, immediate support level is at S1 1.08855 with break below could see further selling pressure towards S2 at 1.08625. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.09366 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.08880 would indicate selling pressure.

For the week to-date, take note that EURUSD is bearish as the pair posted lower by -0.15%.

Key levels to watch out: