Baxia Markets
October 30, 2023

Week of Economic Data: EUR/USD's Sideways Movement Amid Global Tensions

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EUR/USD, as we move into the European morning this Monday, appears to be trading in a sideways fashion, resting near 1.0550. Traders are displaying caution, refraining from initiating fresh positions on the Euro as they await crucial data releases regarding German GDP and inflation. Simultaneously, geopolitical tensions are continuing to cast their shadow on the market. During the early hours of Asian trading on Monday, the EUR/USD pair recorded losses. It promises to be a week brimming with significant economic data releases, with traders keeping a close watch on Germany's growth figures, Eurozone GDP, and inflation data in anticipation of the forthcoming Federal Reserve (Fed) meeting, set to take place on Wednesday. Currently, the major pair is trading near 1.0557, having experienced a 0.07% loss over the course of the day.

 Week of Economic Data: EUR/USD's Sideways Movement Amid Global Tensions

EURUSD Price Action

The EMA 50, positioned beneath the EMA 200, is signaling bearish sentiment. At present, the price hovers just above a key support level (indicated in green rectangle) where a bullish engulfing candle emerged. This retracement towards the bullish engulfing candle suggests a possible bullish correction, provided it holds as a support. More clarity regarding the resilience of these key support levels will be gained after the release of the vital economic data. While the Stochastic indicator has yet to enter oversold territory, it may potentially do so once it reaches the key support zone. The volume profile indicator presents the price as currently residing below the value zone (highlighted in pink), indicating a bearish market sentiment. Thus far, the signals remain mixed, displaying elements of both bullish and bearish tendencies. However, the crucial indicators to monitor are the EMA 50 and 200, both of which align with the market's bearish stance, potentially paving the way for a breakdown of key support levels.

Key Economic Releases to Watch Today

EU, Germany GDP Q3

Forecast -0.3% vs Previous 0.0%

EU, Germany CPI Monthly

Forecast 0.2% vs Previous 0.3%

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