EURUSD on Monday rose 0.1% to 1.08125. What we know.

Dear ,

As requested, let’s look at EURUSD and the recent events that happened in the previous trading session.

EURUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.1%	11 Pips
Week to-date	0.13%	14.5 Pips
October	-2.91%	-324.1 Pips

Upcoming key events (London Time)

  Wed 09:00 AM EUR GDP (3-mth)
  Wed 10:00 AM EUR GDP (seasonally adjusted) (3-mth)
  Wed 12:30 PM USD GDP annual rate
  Wed 01:00 PM EUR CPI Inflation Rate (12-mth)

What happened lately

Germany is gearing up for a significant economic release with its quarterly Gross Domestic Product (GDP) figures scheduled to be reported at 9:00 AM on Wednesday. This high-impact event is critical as GDP growth is a key indicator of economic health and can influence investment and business confidence. Additionally, Germany will release its Consumer Price Index (CPI) inflation rate at 1:00 PM the same day, which serves as a direct measure of inflation impacting both consumers’ purchasing power and monetary policy decisions.

The Eurozone’s GDP, also set to be released on Wednesday at 10:00 AM, mirrors the significance of Germany’s economic data. As the Eurozone’s GDP is seasonally adjusted, this data helps in understanding the underlying trends and the economic situation by filtering out regular seasonal fluctuations. The outcomes of this report could influence European Central Bank’s monetary policies and affect EUR’s value.

Turning to the United States, all eyes will be on the high-impact GDP annual rate to be announced at 12:30 PM, which measures the economy’s growth and output on an annual basis. A GDP figure above expectations may bolster the USD, leading to increased speculation of future Federal Reserve policy directions, such as interest rate hikes. This figure is crucial as it provides a broad measure of overall domestic production and its growth trajectory.

The EURUSD exchange rate is highly sensitive to economic releases from both Eurozone and the United States due to their implications for monetary policy. With the EURUSD noted by Bloomberg to have risen by 0.1% to 1.08125 on Monday, market sentiment may have positioned for potential economic developments. Positive GDP and inflation data from the Eurozone, especially Germany, are likely to support the euro, possibly resulting in a strengthening against the dollar. Conversely, stronger-than-expected U.S. GDP growth might encourage USD appreciation, which would likely counteract euro gains. As such, the interplay of these economic releases could prompt volatility for EURUSD, contingent upon how actual data compares with market expectations.

What can we expect from EURUSD today?

EURUSD on Monday rose 0.1% to 1.08125. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for EURUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.08328 with break above could target R2 at 1.08532 or figure level area. While towards the downside, we are looking at daily low of 1.07817 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.08276 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is mixed as compared to the prior week.

Key levels to watch out: