- EUR/USD edged higher toward 1.0600 in the European morning.
- A risk rally in Wall Street could provide a boost to the pair in the second half of the day.
- September ISM Manufacturing PMI will be featured in the US economic docket.
EUR/USD gained traction and rose toward 1.0600 in the European morning after spending the Asian session fluctuating in a very tight channel. The pair's technical outlook is yet to show a build-up of directional momentum but a bullish opening in Wall Street could cause sellers to remain on the sidelines.
US Congress passed a stopgap funding bill to temporarily avert a government shutdown late Saturday. The previous budget will be extended for 45 days and government will be funded through November 17. This development seems to be helping the market mood improve on Monday. At the time of press, US stock index futures were rising between 0.5% and 0.8%. If US stocks gather bullish momentum after the opening bell, the US Dollar (USD) could continue to lose interest as a safe haven and open the door for an extended recovery in EUR/USD.
Euro price today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The ISM Manufacturing PMI for September is forecast to highlight an ongoing contraction in the US manufacturing sector's economic activity. If this data arrives above 50, the initial reaction could provide a boost to the USD.
Meanwhile, investors keep a close eye on the USD/JPY pair, which was last seen trading near 149.80. Experts think that the Bank of Japan could intervene in the foreign exchange markets if the pair rises above 150.00. A currency intervention could trigger a USD sell-off and lift EUR/USD higher.
Federal Reserve (Fed) Chairman Jerome Powell is scheduled to speak later in the day. Markets are pricing in a less than 60% probability that the Fed will leave its policy rate unchanged this year. Powell, however, is unlikely to steer markets in a certain direction ahead of this Friday's jobs report.
EUR/USD Technical Analysis
The 20-period Simple Moving Average on the 4-hour chart aligns as immediate support at 1.0550. Meanwhile, the Relative Strength Index (RSI) indicator stays near 50, reflecting the pair's indecisiveness.
On the upside, 1.0600 (Fibonacci 23.6% retracement of the latest downtrend, 50-period SMA) aligns as strong resistance before 1.0640 (100-period SMA) and 1.0660 (Fibonacci 38.2% retracement).
In case EUR/USD returns below 1.0550 and starts using that level as resistance, 1.0500 (psychological level, static level) could be set as the next bearish target.
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