Euro Forecast: EUR/USD on Cusp of Testing November High
EUR/USD is on the cusp of testing the November high (1.0937) as it pushes above the opening range for March.
Share this:
Euro Outlook: EUR/USD
EUR/USD climbs to a fresh monthly high (1.0931) to keep the Relative Strength Index (RSI) in overbought territory, with the exchange rate on the cusp of testing the November high (1.0937) as it pushes above the opening range for March.
Euro Forecast: EUR/USD on Cusp of Testing November High
EUR/USD seems to be reestablishing the advance from the start of the month as authorities in Europe plan to increase public spending, and a potential change in fiscal policy may encourage the European Central Bank (ECB) to wind down its rate-cutting cycle as it boosts the outlook for growth.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
As a result, the Governing Council may adopt a wait-and-see approach as the ongoing shift in US trade policy clouds the outlook for the global economy, and developments coming out of the Euro Area may keep EUR/USD afloat ECB President Christine Lagarde acknowledges that ‘fiscal and structural policies should make the economy more productive, competitive and resilient.’
With that said, the rise in EUR/USD may persist as the RSI still holds above 70, but the exchange rate may consolidate over the coming days if it struggles to test the November high (1.0937).
EUR/USD Chart – Daily
Chart Prepared by David Song, Senior Strategist; EUR/USD on TradingView
- EUR/USD pushes above the opening range for March to approach the November high (1.0937), with a break/close above 1.0940 (50% Fibonacci retracement) opening up the 1.1070 (23.6% Fibonacci retracement) to 1.1090 (38.2% Fibonacci extension) zone.
- Next area of interest comes in around the October high (1.1144), but lack of momentum to push above the November high (1.0937) may curb the recent advance in EUR/USD.
- Need a close below the 1.0830 (23.6% Fibonacci extension) to 1.0880 (23.6% Fibonacci extension) region to bring 1.0760 (38.2% Fibonacci extension) back on the radar, with the next area of interest coming in around 1.0660 (61.8% Fibonacci extension) to 1.0710 (50% Fibonacci extension).
Additional Market Outlooks
Canadian Dollar Forecast: USD/CAD Faces BoC Rate Cut as Trump Tariffs Loom
Gold Price Outlook Hinges on Response to Positive Slope in 50-Day SMA
US Dollar Forecast: USD/JPY Weakness Pushes RSI Towards Oversold Zone
British Pound Forecast: GBP/USD Holds Above Channel Resistance
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
DAX forecast: AI optimism offers relief ahead of central bank meetings
The DAX is finding some relief from the recent improvement in risk appetite, with investors becoming less concerned about the sustainability of the AI trade
Gold outlook: XAU/USD holds above key support ahead of FOMC
Gold forecast hangs in the balance as the metal is clinging to $4,000 ahead of the Fed, but higher oil prices and firm yields are making it hard for the metal to turn its rebound into a sustained rally. But can that change soon?
GBP/USD, EUR/USD Forecast: Two trades to watch
GBP/USD struggles ahead of the Budget and Fed rate decision. EUR/USD under pressure ahead of the Fed and ECB rate decisions.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.