EURUSD – broader bullish trend holds firm ahead of key economic events

EURUSD extended its pullback in early Wednesday trading after losing nearly 0.5% on Tuesday, though downside momentum was capped despite a bearish engulfing pattern on the daily chart.

Solid support emerged at 1.1690 (23.6% retracement of 1.1391/1.1780), reinforced by the 10DMA, containing today’s dips. The broader daily outlook remains bullish, but next week’s daily cloud twist could draw sellers towards 1.1690 and open the way for a test of 1.1630/10 (38.2% Fibo retracement / Sep 2–3 higher lows).

Traders focus on key events ahead, with the ECB policy decision and US CPI due Thursday. The ECB is expected to leave rates unchanged at 2% as inflation holds near target, while the Fed, meeting next week, is widely anticipated to deliver its first 25bp rate cut, pressured by labor market weakness, with policymakers maintaining that elevated inflation remains transitory under current restrictive policy.

Res: 1.1736; 1.1780; 1.1800; 1.1830
Sup: 1.1690; 1.1630; 1.1610; 1.1574