EUR/USD Price Forecast: Buyers seek a decisive break above the 200-day SMA
EUR/USD struggles to extend its earlier gains on Wednesday as the US Treasury’s bond-buyback announcement sparks a brief bout of volatility, pushing Treasury yields higher and helping the US Dollar (USD) trim its losses.
Traders are cautious regarding EUR/USD's potential rally as the currency struggles to surpass the 200-day Simple Moving Average (SMA) at 1.1633. Analysts at Scotiabank anticipate a hawkish interest rate hike from the European Central Bank (ECB) during Thursday's meeting, with a 25-basis points (bpts) increase expected and another 25 bpts priced in for December.
Despite this, the Euro is experiencing a tentative and negligible bounce, trading between the 100-day and 200-day SMAs. Momentum indicators suggest that EUR/USD may continue to gain near-term gains, with the RSI in the upper 50 area and climbing. However, buyers will need a decisive break above the 200-day SMA to strengthen the bullish outlook.
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