EUR/USD Current price: 1.1607
- US data failed to surprise, but anyway strong.
- Politics and sentiment will likely drive the way this week.
The American dollar managed to close the week higher against most of its major rivals, except for the Canadian dollar, after a soft start to it. The corrective movement that begun on Monday saw no follow-through, nor the greenback resumed its previous momentum, amid the tepid outcome of the first-tier events that took place in the US. The EUR/USD pair, topped for the week at 1.1689, to close it flat at 1.1607. The Federal Reserve had a "non-live" monetary policy meeting on Wednesday, and as largely expected, left rates unchanged while maintaining alive a possible December hike. On Friday, the US released its monthly employment report, showing that it created 261,000 new jobs in October, a good number that anyway fell short of expectations of 310K. The unemployment rate fell to 4.1% from previous 4.2%, while wages were a big disappointment, flat on the month and up by just 2.4% YoY. Also, the services PMI, the official and the Markit one released last Friday, indicated solid growth in the sector, although the Markit PMI suffered a modest downward revision from its early estimate. The upcoming week´s macroeconomic calendar will offer little of interest from these two major economies, which means that focus will be on politics and sentiment, this last, measured through equities and yields.
Technically, the pair retains the bearish bias in its daily chart, as the recovery pared well below the 20 and 100 DMAs, with the shortest gaining strength downward below the largest. Indicators in the mentioned time frame turned south within bearish territory after correcting oversold conditions, as the price settled above the multi-month low set late October at 1.1574. In the shorter term an according to the 4 hours chart, the technical stance is neutral-to-bearish, as the price settled below all of its moving averages, with the larger ones far above the current price and with strong slopes downward, but indicators lacking directional strength, anyway below their mid-lines. An extension downward below the mentioned low should favor a decline towards the 1.1460 region a major resistance level all through 2015 and 2016.
Support levels: 1.1575 1.1540 1.1510
Resistance levels: 1.1630 1.1670 1.1700
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.