• Sun. Nov 3rd, 2024

EURUSD on Thursday dropped -0.07% to 1.10343. What we know.

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Dear ,

As requested, let’s look at EURUSD and the recent events that happened in the previous trading session.

EURUSD Analysis

Performance after Thursday
Period Pct Chg Momentum
Thursday -0.07% -8.1 Pips
Week to-date -1.21% -135.5 Pips
October -0.92% -102.3 Pips

Upcoming key events (London Time)

  Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, economic data released shows a slight downturn in various sectors. The Census Bureau reported that new orders for manufactured goods dropped by 0.2% in August, a notable decline from the revised 4.9% increase in July. This decline suggests a slowdown in manufacturing activity, potentially indicating cooling demand or production challenges. Additionally, the Department of Labor reported that initial unemployment insurance claims rose to 225,000 for the week ending 28 September, surpassing the previous figure of 219,000. This increase in claims might indicate some softening in the labor market, although the rise is relatively modest and may not yet signal a significant trend.

In the Euro Area, economic indicators also pointed to mixed results. According to Eurostat, the Producer Price Index for August fell to -2.3% from the revised -2.2% in July, showing a continued deflationary trend in producer prices. This drop in the PPI suggests downward pressure on prices at the production level, which may impact profitability for manufacturers if this trend continues. Furthermore, the monthly PPI decreased slightly to 0.6% in August from a revised 0.7% in July. Despite these changes in producer prices, the unemployment rate in the Euro Area remained stable at 6.4% in August, unchanged from July, indicating a relatively steady labor market, at least in terms of unemployment figures.

The EURUSD exchange rate experienced a slight drop of 0.07%, falling to 1.10343. The recent economic data from both the United States and the Euro Area could influence this currency pair. For the Euro, continuous deflationary pressure in producer prices might signal a weaker economic outlook, potentially weighing on the Euro. Meanwhile, the increase in U.S. unemployment claims and the decline in manufacturing orders could reflect uncertainties in the U.S. economy, which might limit the strength of the dollar. As markets digest these mixed signals, the upcoming release of U.S. Nonfarm Payroll data, marked as a high-impact event, could provide further direction for the EURUSD.


What can we expect from EURUSD today?

EURUSD on Thursday dropped -0.07% to 1.10343. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for EURUSD looks bearish as the pair posted lower in Thursday trading session.

Looking ahead for the day, immediate support level is at S1 1.10124 with break below could see further selling pressure towards S2 at 1.09905. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.10474 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.10080 would indicate selling pressure.

For the week to-date, take note that EURUSD is bearish as the pair posted lower by -1.21%.

Key levels to watch out:

R3 1.10912
R2 1.10693
R1 1.10518
Daily Pivot 1.10299
S1 1.10124
S2 1.09905
S3 1.0973