Euro Technical Outlook: EUR/USD Support Reversal Sets Up Breakout Test Ahead of NFP
Euro bulls are attempting to build on the rebound from recent lows, but pivotal resistance still stands in the way of a larger EUR/USD recovery.
Written by
Michael Boutros
Sr. Technical Strategist
Euro Technical Outlook: EUR/USD Multi-Timeframe Analysis
EUR/USD technical analysis shows the euro rebounding off long-term support as the U.S. dollar weakens after the U.S. midterm election results. Michael Boutros, StoneX Media Senior Market Analyst, walks through EUR/USD on the monthly, weekly, daily and four-hour charts and maps the support and resistance zones framing the euro dollar rally. EUR/USD support rests on a 38.2% retracement of the entire 2022 advance, prior weekly closing pivots and a 20-pip zone that held through October, while the 2023 swing high marks the first resistance. Friday's U.S. nonfarm payrolls report is the next major event risk for the U.S. dollar, where a weaker print may weigh further on the greenback. Eurozone inflation data showed headline inflation ticking up to 4% while core held at 2.5%, keeping inflation concerns alive. Markets are pricing an 81% chance of a Federal Reserve rate hike in December, putting the jobs data at the center of the Fed outlook.
This content was created by an affiliate of StoneX Trading and represents the views and opinions of the author/speakers, not the views and opinions of StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by StoneX Trading.
Key EUR/USD Economic Data Releases
Active Short-term Technical Video Updates
- Australian Dollar Technical Outlook: AUD/USD October Breakout Reverses Toward Critical Support
- British Pound Technical Outlook: GBP/USD Reversal Threatens October Recovery
- Canadian Dollar Technical Outlook: USD/CAD Plunge Tests Critical Support Ahead of BoC, Fed
- Gold Technical Outlook: XAU/USD Breakdown Threatens Deeper Selloff
- Swiss Franc Technical Outlook: USD/CHF Reversal Puts Major Support in Focus
- US Dollar Technical Outlook: DXY, Treasury Yields Retreat Despite Hot CPI
--- Written by Michael Boutros, Senior Technical Strategist
Follow Michael on X @MBForex
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