EUR/USD Slipping Below 1.08 Again As Consumer Climate Deteriorates in the Eurozone

EUR/USD turned bearish more than a month ago, falling below 1.08 late last week ahead of the Jackson Hole Symposium, as the economic data from the Eurozone has continued to show a considerable slowdown, while the FED is not turning dovish just yet. However, it experienced a rebound from the lower trendline of a significant rising wedge pattern and touched 1.0840, where sellers stepped in twice in the last two days.

The price reversed and it has slipped below 1.08 again. So, the bearish trend continues to hold as the price continues to establish lower lows and lower highs. Additionally, the moving averages have crossed in a downward direction, further indicating the presence of a bearish trend.

We’re seeing further deterioration in European consumer sentiment, as higher interest rates filter through to the bottom which is the final consumer. In September, German consumer sentiment is expected to decline even further, according to a report by GfK. The research institute has expressed concerns that the possibility of a sustainable recovery before the end of this year is diminishing progressively. This subdued economic environment has led GfK to predict that private consumption is unlikely to have any positive impact on the overall economy throughout the entirety of 2023.