EUR/USD Price Forecast: Multiple headwinds for Euro backs downside bias
The Euro (EUR) is up 0.15% at around 1.1230 against the US Dollar (USD) during the Asian trading session on Tuesday. The major currency pair gains as the US Dollar is under pressure ahead of Meta Q3 earnings on Wednesday.
EUR/USD price forecast suggests a bearish bias for the Euro due to multiple headwinds. The US Dollar has been gaining against the Euro, trading at around 1.1230 during the Asian session on Tuesday. The US Dollar Index (DXY), which measures the Greenback's value against six major currencies, has dropped 0.16% to nearly 101.80. This decline is attributed to concerns over US hyperscalers' continued AI spending.
Strategists at Scotiabank highlight the Euro's underperformance due to ongoing Russia-Ukraine tensions and fiscal risks in France. French equities and fixed income have been particularly hard-hit, with bond spreads versus Germany widening to 145 basis points, near the top of recent historic ranges. Additionally, President Zelenskyy's comments on the US pushing Ukraine to concede may add to geopolitical concerns affecting the Euro.
In daily chart analysis, EUR/USD trades at 1.1232, below the 20-period EMA at 1.1274, indicating a bearish near-term sentiment as the pair struggles to reclaim this level. Immediate resistance is found at the 20-period EMA, while the October 14 low at 1.1113 represents key support.
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