AI-Summary – News For Tomorrow
The EUR/USD outlook hinges on upcoming US employment data, with a potential dollar rebound if figures are positive. Weak data could push the dollar to new lows and increase speculation of Fed rate cuts. Meanwhile, the ECB is hesitant to cut rates, citing Eurozone resilience and potential future inflation increases. Technically, EUR/USD shows bearish momentum, breaking below the 30-SMA and with the RSI below 50. Currently consolidating between 1.1600 and 1.1725, a break below the support level could signal a downtrend towards 1.1400, while holding this support would keep the pair in consolidation.
News summary provided by Gemini AI.
- The EUR/USD outlook suggests a rebound in the dollar after it ended August down.
- The dollar recovered as traders anticipated crucial US employment data.Â
- Isabel Schnabel said rates should remain steady.
If employment figures for August are also poor, the greenback could reach fresh lows. At the same time, bets on a Fed rate cut would surge.Â
Meanwhile, the ECB is in no hurry to resume rate cuts. Isabel Schnabel said rates should remain steady since the Eurozone economy has shown resilience despite US tariffs. At the same time, she noted that inflation could come in higher in the futures.Â
EUR/USD key events today
EUR/USD technical outlook: Bears dominate within the consolidation
On the technical side, the EUR/USD price has made a sharp bearish move, breaking below the 30-SMA. This indicates a shift in sentiment. At the same time, the RSI has broken below 50, suggesting solid bearish momentum. Still, on a larger scale, EUR/USD remains in a consolidation between the 1.1600 support and the 1.1725 resistance levels.Â
The price recently retested the range resistance before making the steep drop. With bears now in the lead, EUR/USD might soon retest the range support.Â
A break below the level would suggest solid bearish momentum and likely mark the start of a downtrend. It would allow bears to revisit the 1.1400 key support level. On the other hand, if the level holds firm, the price will remain in a consolidation phase.
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