EUR/USD Current price: 1.1597

  • US CB Consumer Confidence unexpectedly surged in October, hinting at firmer economic growth.
  • Inflationary pressures in the EU reached a seven-year high ahead of ECB’s meeting.
  • EUR/USD is technically bearish and approaching 1.1570, an immediate support level.

The EUR/USD pair trades around 1.1590, marginally lower for the day. The pair met sellers around 1.1625 ahead of Wall Street’s opening, as solid earnings reports sent indexes to record highs, while US data were mostly upbeat. Stocks’ momentum faded as the session unwound, preventing the dollar from appreciating further. Meanwhile, US government bond yields retreated further, with that on the 10-year Treasury note currently at 1.62%.

 The shared currency was once again affected by disappointing local headlines. The European Central Bank published the Bank Lending Survey, which showed that local banks tightened access to mortgages in the three months to September and foresaw a similar picture for Q4. Also, Eurozone inflation expectations jumped to 2.05%, its highest in seven years amid rising energy prices and supply chain bottlenecks.

On the other hand, the US Richmond Fed Manufacturing Index improved to 12 in October, much better than the previous -3 or the expected 3. New Home Sales increased by 14% MoM in September, while CB Consumer Confidence unexpectedly bounced in October, printing at 113.8 from an upwardly revised 109.8.  On a down note, the Housing Price Index was up a modest 1% in August, missing the market’s expectations.

On Wednesday, Germany will publish the November GFK Consumer Confidence Survey, foreseen at -0.5 from 0.3 previously, while the US will release September Durable Goods Orders, expected to have fallen by 1.1% in the month.

EUR/USD short-term technical outlook

The EUR/USD pair is down for a second consecutive day and seems poised to extend its decline. It is currently trading below the 23.6% retracement of the 1.1908/1.1523 decline, at 1.1615. The daily chart shows that the pair is converging with a bearish 20 SMA, while below the longer ones, which also head firmly south. The Momentum indicator is steady just above its midline, while the RSI indicator heads south at around 42, reflecting the increased bearish potential.

In the near term, and according to the 4-hour chart, the risk is skewed to the downside as the pair is currently developing below all of its moving averages, below the 100 SMA for the first time in over a week. Meanwhile, technical indicators have pared their declines, reflecting the current consolidation, but remain near their daily lows, a sign that bears retain control.

Support levels: 1.1570 1.1525 1.1480

Resistance levels: 1.1670 1.1715 1.1750

View Live Chart for the EUR/USD

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.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1350 as investors ignore yields

US Treasury yields reached fresh weekly highs but fell short of underpinning the greenback. EUR/USD firmly advanced to a fresh weekly high, although a substantial advance is still unclear. 

EUR/USD News

GBP/USD plummets to fresh 2021 lows sub-1.3200

The greenback recovers its poise as the mood partially sours, sending GBP/USD to its lowest since December 2020. Impending Brexit risks and rising covid cases in the UK weigh on the pound, fueled by persistent uncertainty about the Omicron variant.

GBP/USD News

Gold: Greenback slides and offsets rising US yields

Gold is flat and sideways in consolidating markets awaiting a catalyst. Gold is consolidating in the $1,779 and $1,793 range with markets trying to assess the outlook with regards to inflation, central banks and the uncertainty surrounding the Covid-19 variant.

Gold News

Cardano price in phenomenal buying zone as ADA targets $3

A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate different patterns and indicators that suggest ADA is primed to advance further.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Majors

Cryptocurrencies

Signatures