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 | 0.37% | 39.5 Pips | |||
Week to-date | -0.41% | -45.1 Pips | |||
October | -2.81% | -313.1 Pips |
Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, new-home sales demonstrated positive movement in September, with a 4.1% increase. This recovery comes on the heels of a revised figure for August, which initially indicated a 4.7% decline but was later adjusted to a 2.3% decline. Additionally, the U.S. Initial Unemployment Insurance Claims showed a positive development. For the week ending on October 19, the claims decreased significantly to 227,000, down from the previously recorded 241,000 claims, which had been adjusted up from 242,000. The reduction in unemployment claims, as reported by the Department of Labor, signals a strengthening labor market, which is reflective of broader economic resilience.
Turning to the Euro Area, the Consumer Confidence Indicator exhibited a slight improvement in October’s preliminary estimates. The flash estimate reported a rise to -12.5 points, up from -12.9 points in September, according to data from DG ECFIN. This marginal improvement in consumer sentiment indicates a slight shift in the perception of economic conditions among consumers in the eurozone, though the indicator remains in negative territory, reflecting ongoing concerns.
The impact on EURUSD, which rose by 0.37% to 1.08235 on Thursday, seems influenced by these economic indicators. The improvement in the U.S. housing market and lower unemployment claims suggest a robust U.S. economy, typically strengthening the USD. However, the slight improvement in eurozone consumer confidence may provide some support to the euro, aiding its slight appreciation against the dollar. The absence of major economic events further highlights that current movements might be driven by such microdata impacts. These contrasting economic signals could result in volatile swings but also provide room for EURUSD to remain balanced within its trading range unless further significant data emerges.
What can we expect from EURUSD today?
EURUSD on Thursday rose 0.37% to 1.08235. Price is below 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 1.08456 with break above could target R2 at 1.08677 or figure level area. While towards the downside, we are looking at daily low of 1.07702 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.08300 may suggest continuation after recent positive movement.
For the week to-date, take note that EURUSD is mixed as compared to the prior week.
Key levels to watch out:
R3 | 1.09054 |
R2 | 1.08677 |
R1 | 1.08456 |
Daily Pivot | 1.08079 |
S1 | 1.07858 |
S2 | 1.07481 |
S3 | 1.0726 |