Euro / U.S. DollarShort
Potential for a further decline in EURUSD
Fundamental Perspective
Martins Kazaks, a Governing Council member of the European Central Bank, indicated that the bank is likely to cut interest rates at its upcoming meeting, citing increased economic risks and signs of weak growth. However, he cautioned against overly aggressive market expectations for rapid rate cuts, emphasizing the need for a careful approach amid persistent inflation concerns and geopolitical uncertainties. Meanwhile, traders trimmed expectations for a 0.50% Fed rate cut in Nov, pausing the dollar's decline, which could weigh on EURUSD.
Technical Perspective
The EURUSD has retraced recent gains and broken below its ascending trendline, signaling potential weakness ahead. If the pair maintains its bearish momentum below 1.1120, we could see a further decline toward the swing low and the 100% Fibonacci extension near 1.1000. The price remains below the Ichimoku Cloud, suggesting further downside potential. Conversely, if EURUSD rebounds, the price may retest the breakout zone around 1.1120.
By: Li Xing Gan, CMT, CFTe, Financial Markets Strategist Consultant to Exness
Martins Kazaks, a Governing Council member of the European Central Bank, indicated that the bank is likely to cut interest rates at its upcoming meeting, citing increased economic risks and signs of weak growth. However, he cautioned against overly aggressive market expectations for rapid rate cuts, emphasizing the need for a careful approach amid persistent inflation concerns and geopolitical uncertainties. Meanwhile, traders trimmed expectations for a 0.50% Fed rate cut in Nov, pausing the dollar's decline, which could weigh on EURUSD.
Technical Perspective
The EURUSD has retraced recent gains and broken below its ascending trendline, signaling potential weakness ahead. If the pair maintains its bearish momentum below 1.1120, we could see a further decline toward the swing low and the 100% Fibonacci extension near 1.1000. The price remains below the Ichimoku Cloud, suggesting further downside potential. Conversely, if EURUSD rebounds, the price may retest the breakout zone around 1.1120.
By: Li Xing Gan, CMT, CFTe, Financial Markets Strategist Consultant to Exness
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