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 | 0.23% | 24.5 Pips |  |
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| Week to-date | 0.82% | 88 Pips | |
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| October | -2.26% | -252 Pips |  |
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Upcoming key events (London Time)
Fri 12:30 PM USD Nonfarm Payroll Employment
What happened lately
In the United States, several economic indicators for September and October have been reported. Personal income rose by 0.3% in September compared to 0.2% in August, and the U.S. PCE Price Index for September grew by 0.2% monthly while decreasing to 2.1% over a 12-month period. Consumer Spending slowed down slightly from a revised figure, growing at 0.3%. The PCE Price Index excluding food and energy was up to 0.3% in September. Initial unemployment claims dropped to 216,000 by the end of October, showing some strength in the labor market. The GDP growth for Q3 was down to 2.8%, and the Employment Cost Index dropped slightly to 0.8%. Additionally, pending home sales rose significantly by 7.4% in September.
In the Euro Area, the HICP indices for October showed some growth with the main index rising to 2% over a 12-month period, which marks an increase from September. The Core HICP also saw a slight rise to 0.2% while staying steady at 2.7% annually, signaling moderate inflationary trends. GDP figures demonstrated growth, with the seasonally adjusted GDP increasing to 0.9% in Q3. However, the business climate index declined in October, showing somewhat decreased confidence. Economic Sentiment Indicator also dropped slightly, but consumer confidence remained unchanged.
Germany reported a decrease in retail trade figures, ending September down to 1.2% from 1.6% in August, though annual turnover climbed to 3.8%. Inflation indicators for October showed increases, with the CPI inflation rate rising to 2%. The GDP in Germany slightly increased in the Q3 flash estimate, recovering from a negative figure in Q2. However, the unemployment rate rose to 6.1%, accompanied by an increasing unemployment change.
Regarding the EURUSD, the composite of data reflects a mixed economic performance in both regions. The U.S. data shows moderate growth with some weakening in GDP and the price indices. In contrast, the Eurozone is showing better growth prospects and inflationary pressures, which may buoy the Euro. However, overall economic sentiment has dampened slightly. Notably, the euro has had a downward trend in October. The outcome of upcoming U.S. nonfarm payrolls, a high-impact event, might shift market dynamics, potentially reinforcing recent movements or altering the current trajectory, depending on the deviations from expectations. Investors will closely monitor these to adjust their outlooks on EURUSD accordingly. Overall, these indicators suggest possible volatility ahead, impacting the EURUSD pair’s movement.
What can we expect from EURUSD today?
EURUSD on Thursday rose 0.23% to 1.08846. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for EURUSD looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.09005 with break above could target R2 at 1.09165 or figure level area. While towards the downside, we are looking at daily low of 1.08438 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.08881 may suggest continuation after recent positive movement.
For the week to-date, take note that EURUSD is bullish as the pair continued to trade higher and is up by 0.82% over the past few days.
EURUSD ended month of October trading session down by -2.26% or -252 pips lower.
Key levels to watch out:
| R3 | 1.09448 |
| R2 | 1.09165 |
| R1 | 1.09005 |
| Daily Pivot | 1.08722 |
| S1 | 1.08562 |
| S2 | 1.08279 |
| S3 | 1.08119 |
