However, the pair is retesting a previously violated symmetrical triangle pattern, where support has now turned into resistance, suggesting a possible bearish bias.
The 50-day EMA at $1.3030 is providing near-term support, while the 200-day EMA at $1.3113 could limit further gains. Immediate support sits at $1.3038, with stronger support at $1.3011. If the pair falls below the pivot, the downside could accelerate toward $1.2973.
Euro Steadies After ECB Holds Rates, Market Awaits December Easing
The euro remained stable after the ECB left its refinancing rate at 3.40%. With inflation easing to 1.7% and trade balances narrowing, traders anticipate further cuts in December.
The Italian trade balance fell to €1.43B, reflecting wider eurozone economic pressures.
Investors are pricing a possible 20% chance of a half-point rate cut at the ECB’s December meeting, with significant attention on future monetary policy developments as the eurozone navigates potential soft landings.
EUR/USD Technical Forecast
The EUR/USD is trading at $1.0843, up 0.12%, but facing resistance near the key pivot point at $1.0864. If the pair can break above this level, it could push toward immediate resistance at $1.0880 and potentially test higher levels at $1.0898 and $1.0916.
