There are at least five important announcements this week. All of them may have the potential to be new catalysts for EUR/USD.

The market focuses on two major pairs this week: USD/JPY and EUR/USD. USD/JPY continues to hover around the crucial 150.00 level, while EUR/USD anticipates several important announcements in the next four days. EUR/USD is seen edging slightly higher in a narrow range above the 1.0600s when the news was written at the end of the European session on Monday, October 23rd.

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Market risk sentiment remains fragile due to concerns about the escalation of armed conflict in the Middle East. This factor supports the demand for safe-haven assets, especially the US dollar and gold. However, the market is also closely watching various other significant news.

There are at least five critical announcements that have the potential to be new catalysts for EUR/USD. Starting from the release of Eurozone PMI data on Tuesday to the ECB interest rate announcement on Thursday. In addition, there are also releases of PMI data, GDP, and the US PCE price index. The ability of EUR/USD to break out of its bearish trend will be determined by upcoming data.

"The currency pair was trying to break its well-established bearish trend line and a key short-term resistance area around 1.0580," says Fawad Razaqzada, an analyst at City Index.

"A successful break above this level could pave the way for a further upward movement towards a more substantial resistance level at 1.0635, above which one will have to consider the possibility that rates may have formed a bottom," says Razaqzada.

He added, "Unless we see a surprise improvement in the PMI readings for the Eurozone, expect the pressure to remain on the EUR/USD."

Razaqzada also said that if GDP and most of the other US macro indicators this week are higher than the consensus estimates, it will at least support the narrative of the Fed raising rates for a longer period. However, disappointment with the data could ultimately lead to lower yields and the US dollar.

The next focus is on the ECB interest rate announcement. Most market participants believe the ECB will keep the main refinancing operations rate at 4.50%, the marginal lending facility at 4.75%, and the deposit facility rate at 4.00% after the September meeting.

However, the statement by the ECB Governing Council and the press conference by the ECB President accompanying the announcement are likely to bring surprises.