- December 20, 2024
- Posted By: james w
- Category: Market News
Key Drivers for EUR/USD: Parabolic SAR and MACD Trends
The EUR/USD currency pair, often referred to as the “Fiber,” is the most traded currency pair globally, representing the relationship between the Euro (EUR) and the US Dollar (USD). It’s fundamental outlook is highly influenced by macroeconomic indicators and central bank decisions in both the Eurozone and the United States. With its liquidity and volatility, EUR/USD serves as a benchmark for global currency markets.
For Today’s EUR/USD news analysis the focus revolves around significant upcoming news events. The Federal Reserve’s Mary Daly’s Bloomberg TV interview is crucial as her remarks may provide insights into future monetary policy, potentially strengthening the USD if perceived hawkishly. Key economic releases like the U.S. PCE index and Personal Income/Spending reports will shape expectations for inflation and consumer behavior, impacting the USD’s trajectory. Concurrently, Eurozone’s Producer Price Index (PPI) and Consumer Confidence data are vital to assess economic health, with better-than-expected data potentially supporting the Euro. As both economies grapple with inflationary challenges, these data points will steer the Fiber’s direction in the short term.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The H4 chart for EUR/USD indicates the pair’s bearish bias with recent sharp declines. The Parabolic SAR, positioned above the price candles, confirms the ongoing downtrend, signaling further downside risk unless a reversal is triggered. Meanwhile, the MACD exhibits negative momentum with a bearish crossover and histogram bars deepening below the zero line, underscoring strong selling pressure. The Fiber’s Price action has tested the critical support level of 1.0350, a psychological zone. However, if this support holds, a pullback to the resistance zones at 1.0413 or 1.0468 could occur. Overall, the EUR/USD technical analysis today suggest continued caution for bulls until a breakout or a trend reversal pattern emerges.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.