News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Pre-Rate Decision Volatility Spikes: EURUSD at Risk of Flash Crash
Forex
Technical Analysis
Economic
Summary:
Following the release of GDP data from Germany and the Eurozone, the EURUSD exchange rate remained stable. Traders are maintaining a cautious stance ahead of the upcoming interest-rate decision from the European Central Bank (ECB).
Sell
CLOSEDEURUSD
End Time
1.16130
Entry Price
1.12000
TP
1.18200
SL
1.15193 -0.00168 -0.15%
398
Points
Profit
1.12000
TP
1.15732
CLOSING
1.16130
Entry Price
1.18200
SL
Fundamentals
Following the release of GDP data from Germany and the euro area, the EURUSD exchange rate remained stable. Traders are treading cautiously ahead of the ECB's imminent interest-rate decision. Markets widely expect the ECB to keep rates unchanged at its October meeting, which will be the third consecutive hold, and see no policy shift through the end of 2025. Attention is also centered on unemployment figures for both Germany and the euro zone, as well as on Germany's CPI.
Following their high-profile meeting in South Korea, U.S. President Donald Trump announced that tariffs on Chinese goods will be reduced from the current 57% to 47%. He also stated that the rare-earth dispute has been resolved, ensuring that no additional restrictions will be imposed on China's exports of critical minerals. In addition, Chinese President Xi Jinping emphasized that "both sides should focus on the long-term interests of cooperation."
The U.S. dollar remains under pressure amid uncertainty over the Fed's policy stance in December. Policymakers acknowledge that inflationary pressures could broadly pick up in the second half of the year, yet this is not seen as sufficient to preclude a further reduction in the federal funds rate. Chair Jerome Powell emphasized, however, that the likelihood of another cut in December is far from assured.
The Federal Open Market Committee (FOMC) approved the rate reduction by a 10-to-2 vote, lowering the target range for the federal funds rate by 25bps to 3.75%–4%. The Fed also announced that balance-sheet runoff will cease effective 1 December, when maturing agency debt will be reinvested into Treasury bills.
Among them, Fed Governor Stephen Miran dissented from the decision, advocating for a 50 bps rate cut. Kansas City Fed President Jeff Schmid favored keeping rates unchanged. The statement continued to use the previous description of the labor market, saying that "employment growth has slowed, and the unemployment rate has risen but remains low as of August." The statement added that "recent indicators are consistent with the above changes" and "the downside risks to employment have increased in recent months."
The Fed stated that existing indicators suggest that economic activity is expanding at a moderate pace, reiterating that inflation has risen since the beginning of the year and is still at a relatively high level.
Technical Analysis
On the daily timeframe, following a death cross signal on EURUSD, the MACD fast and slow lines have dropped below the zero axis, indicating the market has entered a bearish phase. The Bollinger Bands are expanding downward, with moving averages diverging downward. Price is oscillating lower along the EMA12. The RSI reading of 45 reflects pessimistic market sentiment. If the pair breaks below 1.16 again, it will likely decline toward the previous low of 1.154 and the EMA200 level near 1.139.
From a weekly perspective, the Bollinger Bands are contracting, with price oscillating around the middle band. After the MACD death cross, the fast and slow lines are pulling back toward the zero axis but still have some distance to go, suggesting the correction is not yet complete. The RSI at 55 shows gradually lower highs, indicating a wait-and-see sentiment in the market. Once the middle Bollinger Band fails to hold as support, price will likely drop toward the EMA50 or even the lower Bollinger Band.
Therefore, the short-term trading strategy suggests prioritizing short positions on rallies.
Trading Recommendations
Trading Direction: Sell
Entry Price: 1.1613
Target Price: 1.12
Stop Loss: 1.182
Support: 1.145/1.14/1.12
Resistance: 1.182/1.192/1.2
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.