The EUR/USD pair experienced a decline in the American session on Tuesday, stagnating near the 1.0700 benchmark due to diminished buyer interest. The pair had started strong but weakened as the USD rebounded, bolstered by a 1.5% rise in the benchmark 10-year US Treasury bond yield after a sharp drop.
The USD held firm amidst cautious market sentiment following the UN Security Council's unsuccessful private session aimed at resolving conflict and Israeli Prime Minister Benjamin Netanyahu's insistence on no general ceasefire until Hamas released all hostages. Market participants are now awaiting insights from Federal Reserve policymakers. Any contradiction to the expected unchanged policy rate in December could further strengthen the USD and negatively impact the EUR/USD.
German data revealed a monthly decrease of 1.4% in Industrial Production for September, which contributed to the weakening of the EUR/USD pair. Technical analysis on the 4-hour chart using the 20-period Simple Moving Average (SMA) and Fibonacci retracements identifies the key pivot point for EUR/USD at 1.0700, with various potential resistance and support levels outlined.
The EUR/USD pair has seen a decline from its peak of 1.0750 to sub-1.0700 levels due to escalating selling pressure, potentially extending to the temporary resistance of the 55-day SMA near 1.0650. The negative outlook remains while it's under the 200-day SMA of 1.0804, with the latest price being 1.0669 (-0.48% daily change).
The previous daily high was at 1.0756 and low at 1.0718, with daily Fibonacci levels at 38.2% (1.0732) and 61.8% (1.0742). Daily pivot points are S1 (1.0706), R1 (1.0745), R2 (1.077), and S2 (1.0693). The previous weekly high was 1.0747, 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).
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