EUR/USD Approaches Technical Resistance Zone
On Wednesday, the EUR/USD currency pair posted minor losses, trading near 1.1575 after reaching a peak of 1.1600 on Tuesday. The decline reflects cautious investor sentiment ahead of the United States Congress vote on a government funding bill. Traders are also awaiting a series of official economic releases to better assess the momentum of the United States economy.
Germany’s Harmonized Index of Consumer Prices (HICP) rose 0.3% month-on-month and 2.3% year-on-year in October, slightly below the 2.4% annual rate recorded in September. The Consumer Price Index (CPI) also increased 0.3% monthly, while the annual rate eased from 2.4% to 2.3%.
Additionally, the Wholesale Price Index rose 0.3% month-on-month, exceeding expectations. These figures suggest that inflationary pressures in Germany are moderating, supporting the European Central Bank’s (ECB) current monetary policy stance.
According to ADP, private companies in the United States shed an average of 11,250 jobs per week during the four weeks ending October 25. This confirms ongoing weakness in the labor market and increases the likelihood of a rate cut by the Federal Reserve at its December meeting.
The U.S. Dollar Index (DXY) has also weakened slightly, providing support for the Euro. Traders are now watching for comments from Federal Reserve officials that may offer clues about the future path of interest rates.
Today’s data shows the Euro posted its strongest gains against the Japanese Yen, while declining 0.10% against the United States Dollar. These fluctuations reflect a cautious market tone ahead of key political and economic decisions.
EUR/USD has been climbing for five consecutive days and is now approaching descending trendline resistance near 1.1615. The Relative Strength Index (RSI) is hovering around 60, and the MACD indicator is printing green histogram bars, though selling pressure may emerge at this level.
A breakout above 1.1625 could shift market focus toward the October 28–29 highs near 1.1670. On the downside, key support levels are located at 1.1540, followed by the psychological level of 1.1500.