EUR/USD Price Forecast: Bounces-off key support near 1.1110 ahead of German/ US data
EUR/USD is back in the green zone early Thursday, reversing a part of Wednesday’s steep sell-off. The further upside, however, appears elusive if risk aversion gathers steam and revives the safe-haven demand for the US Dollar (USD).
Markets trade with caution following the American AI giant’s, Nvidia, disappointing sales forecast and amid increased nervousness heading toward the release of this week’s top-tier economic data.
Germany is set to publish its preliminary inflation data while the US calendar will feature the second estimate of the Gross Domestic Product (GDP) later Thursday.
From a short-term technical perspective, the EUR/USD uptrend remains intact so long as the 1.1107 support holds. That level is the 23.6% Fibonacci Retracement (Fibo) level of the August rally from 1.0775 to 1.1202, 13-year highs.
The 14-day Relative Strength Index (RSI) stays firm above 50, currently near 63, justifying the major’s bullish potential.
Acceptance above the 1.1150 psychological level is needed on a daily closing basis to retest the yearly top just above 1.1200. Ahead of that, Wednesday’s high of 1.1186 could challenge the bearish commitments.
On the flip side, a sustained break below the abovementioned 23.6% Fibo support at 1.1107 could open up the downside toward the 38.2% Fibo level of the same advance, aligned at 1.1045.
EUR/USD buyers will then find immediate support at the 21-day Simple Moving Average (SMA) of 1.1026. Additional declines could thwart the 1.1000 round level.
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