EUR/USD Current price: 1.1553
- US Initial Jobless Claims contracted to 326K in the week ended October 1.
- Market players are encouraged by US debt limit positive news.
- EUR/USD remains under selling pressure and could reach fresh 2021 lows.
The EUR/USD pair is marginally higher on a daily basis, as the market mood remains positive following news that US Senate Republican Leader Mitch McConnell offered a temporary solution to the debt crisis on Wednesday. The governing body will vote on the proposal during the American afternoon. As a result, stocks trade within positive levels, while demand for government bonds receded.
Generally speaking, the dollar is weaker across the board, although the upside for the shared currency is being limited by dismal local data. Germany published August Industrial Production, which fell by 4% MoM, much worse than the -0.4% expected. The annual reading was 1.7%, well below the 11.4% expected.
The US published September Challenger Job Cuts, which rose 14% to 17,895 from the 24-year low of 15,723 cuts announced in August. Also, Initial Jobless Claims for the week ended October 1 printed at 326K, better than the 348K expected.
EUR/USD short-term technical outlook
The EUR/USD pair peaked at 1.1571 but currently trades in the 1.1550 price zone, retaining its bearish stance. The 4-hour chart shows that the pair remains below a firmly bearish 20 SMA, which currently stands at around 1.1580, providing dynamic resistance. The Momentum indicator advanced within negative levels, although the RSI turned lower near oversold readings, indicating persistent selling interest. The pair will likely resume its slide on a break below 1.1520, the immediate support level.
Support levels: 1.1520 1.1475 1.1440
Resistance levels: 1.1580 1.1640 1.1685
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 treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.