EUR/USD Outlook: Strong Demand and Uncertain Economic SignalsThe EUR/USD pair has experienced a notable rebound, aligning with our previous outlook as it approached a robust weekly demand zone at the onset of the new weekly candle, marked by a bullish gap. Recent data from Germany indicates a decline in the IFO Current Assessment Index, dropping to 84.3 in November from 85.7. Meanwhile, the Expectations Index decreased slightly from 87.3 to 87.2. Despite these figures, the euro appears resilient, seemingly brushing off the negative data.
On the other hand, downward pressure on the US dollar remains limited, fueled by recent economic indicators that suggest the Federal Reserve might be inclined to scale back the pace of interest rate cuts. This week’s unemployment claims data, set to be released on Wednesday, has the potential to move the markets significantly, especially if the figures come in more favorable than the forecast, which anticipates an uptick in unemployment.
Interestingly, there is the possibility of an upward thrust in the weekly DXY chart, although it has yet to be confirmed by trading volumes.
Given the current market dynamics, it may be prudent to hold off on making any moves until Wednesday. This will allow traders to assess potential retracement opportunities as the market may look to recover the gap created during the Asian session.
EUR/USD Gap
✅ Please share your thoughts about EUR/USD in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
