In September, the EUR/USD pair came under pressure to weaken, despite inflation in the eurozone being slightly higher than expected. The HICP rose to 2.1%, while the core CPI remained at 2.3%. However, these figures failed to convince investors that the European Central Bank would change its accommodative monetary policy—the market rather expects interest rates to remain steady or even be lowered in the future. As a result, the euro missed the opportunity to strengthen, and its price started to retreat.
Meanwhile, the US dollar gained value despite a disappointing ISM Manufacturing reading of 48.7, benefiting from increasing risk aversion and its status as a safe haven. Investors are now awaiting key upcoming US data such as the ISM Services index and employment figures, which could influence the further direction of the pair.
Throughout this year, EUR/USD has maintained a clear upward trend. On the daily chart, the price reached a local high near 1.1735 before entering a corrective decline. The pullback found support around 1.1645, which corresponds to the confluence of the EMA20 and EMA50 moving averages (marked on the chart by green and orange lines, respectively). After bouncing from this area, the price entered a consolidation phase, indicating a pause in market decision-making.
Currently, the price is approaching resistance near 1.1735, which was the highest point in recent weeks. A break above this level could pave the way for further gains toward 1.1800. Conversely, if the price breaks below the EMA50/EMA20 support zone, there is a risk of a deeper correction toward the EMA100 level, located around 1.1520.
Source: xStation5
Daily summary: A green start to the new trading week 📈
NATGAS gains 12% 🚨📈
GOLD returns to ATH levels 📈
Crypto news: Bitcoin and Ethereum on the rise again 📈
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
