The EUR/USD pair fell during Tuesday’s U.S. session, stagnating near the 1.0700 level as buying interest waned. The pair had started strong, but weakened as the USD rebounded, supported by a 1.5% rise in the benchmark 10-year US Treasury yield after a sharp drop.
The USD held firm amid cautious market sentiment following the UN Security Council’s unsuccessful closed-door meeting to resolve the conflict and Israeli Prime Minister Benjamin Netanyahu’s insistence that there will be no general ceasefire until Hamas releases all hostages. Market participants are now looking for insight from Federal Reserve policymakers. Any contradiction to the expected unchanged rate in December could further strengthen the USD and negatively impact the EUR/USD.
German data showed a 1.4% monthly decline in industrial production for September, which contributed to the weakening of the EUR/USD. Technical analysis on the 4-hour chart using the 20-period simple moving average (SMA) and Fibonacci retracement shows the key pivot point for the EUR/USD at 1.0700, with several potential resistance and support levels outlined.
The EUR/USD pair has seen a decline from its high of 1.0750 to below 1.0700 on escalating selling pressure, which may extend to the temporary resistance of the 55-day SMA at 1.0650. The negative outlook remains as long as it’s below the 200-day SMA at 1.0804, with the last price at 1.0669 (-0.48% daily change).
The previous daily high was 1.0756 and the daily low was 1.0718, with daily Fibonacci levels at 38.2% (1.0732) and 61.8% (1.0742). Daily pivot points are at S1 (1.0706), R1 (1.0745), R2 (1.077) and S2 (1.0693). The previous weekly high was 1.0747, the previous weekly low was 1.0517, and the previous monthly high and low were 1.0695 and 1.0448 respectively. Key daily SMAs are: SMA20 (1.0595), SMA50 (1.0636), SMA100 (1.0805) and SMA200 (1.0806).
