The EUR/USD pair trades at its lowest in two months, having declined down to 1.1071 at the beginning of the day, as investors continued to sell the common currency during the Asian session. Weighed by ECB's latest economic policy statement, the common currency is bouncing from that low partially on profit taking ahead of the weekend, but also supported by some positive data coming from the EU. The Services and Manufacturing PMIs for October showed some solid growth in the region, with only the German Manufacturing PMI weakening in the month.
Later today, the US will release its own Manufacturing data, expected to have decline in October to 52.8 from the previous 53.1. In the meantime, stocks maintain their previous strength, extending its rallies and trading at fresh 2-month highs.
View the Live chart of the EUR/USD
The pair has fell down to the long term ascendant trend line coming from April low at 1.0519, a major support, yet so far the bounce has been quite shallow. The price is struggling around the 1.1120 region, also a critical level, and seems unable to rally beyond it. In the 4 hours chart, the technical indicators are currently consolidating in extreme oversold territory, but far from suggesting the pair can extend its upward corrective movement at the time being, whilst the 20 SMA heads strongly lower, too far away from the current level to even consider it today.
The EUR/USD pair can extend its advance un to 1.1160, although selling interest may cap the rally around it, particularly if dollar's demand resumes. Further gains above it however, should lead to a test of the 1.1200 level. Renewed selling pressure below 1.1100 on the other hand, should see the pair extending its decline towards fresh lows around 1.1050/60, whilst further declines should lead to an approach to the 1.1000 figure.
Latest updates on the EUR/USD Forecast
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.