Image Source: Pixabay
EUR/USD shed another fifth of a percent on Wednesday as the Fiber crumples ahead of Thursday’s fresh round of Purchasing Managers Index (PMI) figures. ECB officials talked down economic concerns, reiterating the need for caution when weighing future rate cuts. FX markets promptly responded by pummeling the Euro further into the dirt, hitting a 16-week low.Global PMI figures are due for a rolling release on Thursday. Markets have high expectations for pan-EU PMI survey results, with median market forecasts calling for a slight uptick in October’s EU Services PMI to 51.6 from September’s 51.4. On the US side, median market forecasts expect October’s US PMI figures to come in mixed, with the Manufacturing component expected to rise to 47.5 from 47.3, while the Services PMI component is expected to tick slightly lower to 55.0 from 55.2.
EUR/USD price forecast
EUR/USD continues to slide lower as the pair tests support near the 1.0780 level. The recent price action shows a significant breakdown below both the 50-day EMA, currently at 1.0975, and the 200-day EMA at 1.0908, signaling a shift in market sentiment to the downside. The sustained selling pressure has pushed the pair into a bearish phase, with sellers eyeing further downside towards the 1.0750 support zone. A break below this key psychological level could trigger a more aggressive selloff towards the 1.0700 handle.The MACD indicator remains firmly in bearish territory, with the MACD line continuing to trend below the signal line and the histogram deepening in negative values. This suggests that downward momentum is still intact, and any attempts at a reversal may face stiff resistance. Traders should be cautious of oversold conditions, but as long as the price remains below the moving averages, the bearish bias will likely persist. Any bounce from current levels could face immediate resistance near the 1.0900 region, making it a key level to watch for potential shorting opportunities.
EUR/USD daily chart
More By This Author:EUR/USD Tests Further Into The Red, Approaches 16-Week Low EUR/USD Grinds Closer To 1.08 In Monday Fallback GBP/USD Extended Its Meager Recovery From 1.30
