EUR/USD Eases Off Recent Highs Despite Strong Eurozone Data

Fundamental Overview

EUR/USD is easing slightly on Friday, trading near 1.1620 after a strong seven-day rally but still on track for a 0.45% weekly gain. The Euro temporarily lost momentum despite supportive Eurozone data, as broader risk-off sentiment weighed on the currency.

Revised figures confirmed the Eurozone economy grew 0.2% in Q3, with annual growth revised upward to 1.4%. Additionally, the Trade Balance showed a substantial improvement, widening to €19.4 billion in September from €1.9 billion previously.

Meanwhile, the US Dollar has faced persistent pressure this week, even as Federal Reserve policymakers maintained a hawkish tone. Fed officials Mussalem and Hammack stressed inflation concerns, while Kashkari adopted a more balanced view, contributing to mixed USD sentiment.

EUR/USD Technical Analysis – Daily Chart

Technical Overview

• EUR/USD trades within an upward channel, maintaining a bullish structure.
• The pair remains above all key Simple Moving Averages (SMA).
• RSI signals bullish momentum, while Stochastic shows a neutral bias.

Key Levels to Watch:

• Resistance: 1.1650
• Support: 1.1582

Trading Outlook

After rallying sharply on the higher time frame, EUR/USD faced rejection and entered a corrective phase. The pair has since found support and regained upward traction, breaking above the trendline. Current rejection from the upside suggests a short-term pullback; however, holding above trendline support keeps the bullish structure intact.

Trade Suggestion:

• Buy Limit: 1.1600
• Take Profit: 1.1655
• Stop Loss: 1.1572

FAQ

Q1: Why did EUR/USD lose momentum today?
Despite strong Eurozone data, broader risk-off sentiment and mild USD stabilization caused EUR/USD to pull back.

Q2: How did Eurozone data impact the Euro?
Upgraded GDP and a sharply improved Trade Balance supported the Euro, helping maintain its weekly gains.

Q3: What is driving the US Dollar?
Mixed Fed commentary—some hawkish, some balanced—has kept USD direction uncertain.

Q4: What technical levels matter now?
Support sits at 1.1582, while resistance is at 1.1650. A break above resistance could resume the uptrend.

Q5: Is EUR/USD bullish or bearish short-term?
The trend remains bullish as long as the pair stays above trendline support.

Disclaimer

This report is for informational purposes only and does not constitute financial advice. Market conditions may change without notice. Always consult a financial professional before making trading decisions