FxNews—European stock markets are expected to open inconsistently on Monday as investors evaluate the region’s economic and monetary policies. The previous week, the European Central Bank reduced its deposit rate by 0.25%—the third cut this year—because inflation in the Eurozone decreased quicker than expected.
Key Economic Data and Earnings Reports
Investors are also preparing to review economic data on producer prices from Germany for September and financial results from companies like SAP and Forvia. In premarket trading, futures for the Euro Stoxx 50 dropped by 0.15%, while those for the Stoxx 600 slightly rose by 0.05%.
EURUSD Technical Analysis – 21-October-2024
The European currency trades in a robust bearish market against the U.S. dollar because the price is below the 100-period simple moving average. As of this writing, the EUR/USD pair trades below the $1.088 (August 8 Low) resistance at approximately 1.084. The market has ignored the Awesome Oscillator signaling divergence, a trend reversal signal.
Additionally, the EUR/USD bulls failed to stabilize the price above the Bollinger Bands‘ median line, which signals that the bear market prevails.
Overall, the technical indicators suggest the primary trend is bearish and will likely resume.
EURUSD Forecast – 21-October-2024
If the immediate resistance at $1.088 holds, the EUR/USD price will likely target the August 1 low at $1.078.
Conversely, if bulls pull the price above the $1.088 mark, the uptick momentum from $1.081 could extend to $1.095 (October 4 Low).
EURUSD Support and Resistance Levels – 21-October-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 1.081 / 1.078
- Resistance: 1.088 / 1.095
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
