EUR/USD wobbles at 16-month low ahead of US Michigan Consumer Sentiment


  • EUR/USD grinds lower around July 2020 levels, prints three-day downtrend.
  • US Treasury yields struggle to remain, test DXY bulls.
  • ECB rejects rate hike chatters via downbeat economic forecasts, Fed hawks remain hopeful.
  • US data, inflation expectations and China headlines will be important for fresh impulse.

EUR/USD treads water around 1.1440, after refreshing multi-day low to 1.1436 ahead of Friday’s European session. The major currency pair recently tracks a mild pullback in the US Treasury yields amid sluggish trading day ahead of the US data.

That said, the US 10-year Treasury yields struggle to remain firmer around 1.56%, following the biggest daily jump in seven weeks portrayed on Wednesday and Friday’s off in the US bond markets. The same weigh on the US Dollar Index (DXY) as the greenback gauge refreshes intraday low following the jump to renew the highest levels since July 2020.

Behind the latest market moves are the chatters over China’s Evergrande and trade ties with the US, both of which flash grim signals and favor the market’s rush to the risk-safety of late. On the same line were Fed rate hike talks after the US inflation jumped to a 31-year peak.

Furthermore, the EU Commission’s (EC) downward revision of the economic growth forecast for the next year and expectations that the inflation will ease help the bloc’s central bank to defend the easy money policy and avoid rate lift talks.

Alternatively, hopes that the Asia-Pacific markets will rebound, per the global rating agency Moody’s, join the Chinese policymakers’ hopes of overcoming the Evergrande and energy crisis to weigh on the US Treasury yields and the greenback. It’s worth noting that a lack of updates on the US inflation and Fed speak could also be linked to the latest consolidation in the market sentiment.

Even so, the EUR/USD bears remain hopeful as the US inflation expectations remain steady near a 15-year high. The same line highlights today’s US Michigan Consumer Sentiment for November, expected 72.4 versus 71.7 prior, for fresh impulse.

Read: US Michigan Consumer Sentiment Index Preview: Inflation’s dangerous impact

Technical analysis

A convergence of a five-month-long descending trend line and high marked in June 2020 becomes a tough nut a crack for the EUR/USD sellers around 1.1420-10 zone. On the other hand, corrective pullback remains less lucrative until the quote stay below one-month-old horizontal resistance, previous support around 1.1530.

Additional important levels

Overview
Today last price 1.1441
Today Daily Change -0.0006
Today Daily Change % -0.05%
Today daily open 1.1447
 
Trends
Daily SMA20 1.1592
Daily SMA50 1.1655
Daily SMA100 1.1731
Daily SMA200 1.1881
 
Levels
Previous Daily High 1.1488
Previous Daily Low 1.1443
Previous Weekly High 1.1616
Previous Weekly Low 1.1513
Previous Monthly High 1.1692
Previous Monthly Low 1.1524
Daily Fibonacci 38.2% 1.146
Daily Fibonacci 61.8% 1.1471
Daily Pivot Point S1 1.1431
Daily Pivot Point S2 1.1415
Daily Pivot Point S3 1.1386
Daily Pivot Point R1 1.1475
Daily Pivot Point R2 1.1504
Daily Pivot Point R3 1.152

 

 

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