Dear ,
As requested, let’s look at EURUSD and the recent events that happened in the previous trading session.
EURUSD Analysis
Performance after Tuesday | |||||
Period | Pct | Chg | Momentum | ||
Tuesday | -0.62% | -68.9 Pips | |||
Week to-date | -0.93% | -104.1 Pips | |||
October | -0.65% | -72.6 Pips |
Upcoming key events (London Time)
No major events for the day.
What happened lately
Economic data from the United States shows positive activity, with the Bureau of Labor Statistics reporting that Job Openings and Labor Turnover Survey (JOLTS) for August rose to 8.04 million, an increase from the revised July figure of 7.711 million. Additionally, the Chicago Purchasing Managers’ Index in September showed a slight rise to 46.6 points from 46.1 points in August, suggesting marginal improvement in managerial purchasing decisions.
In contrast, economic indicators for the Euro Area present a different picture. According to Eurostat, the Core Harmonised Index of Consumer Prices (HICP) for September’s flash estimate dropped to 2.7% from 2.8% in August. The overall HICP one-month estimate fell to -0.1% from 0.1%, and the Core HICP one-month estimate decreased to 0.1% from 0.3%. The HICP 12-month flash estimate also saw a decline to 1.8% from 2.2% in August, indicating reduced consumer price growth.
Germany, the Euro Area’s largest economy, also reported decreases in inflation metrics. The Federal Statistical Office (Destatis) indicated that the Harmonised Index of Consumer Prices (HICP) for September shows a decrease to 1.8% over 12 months, down from 2% in August. The monthly HICP estimate improved slightly to -0.1% from -0.2%, while the general CPI inflation in September moved to 0% from -0.1% in August. Nevertheless, Germany’s CPI inflation rate over the 12 months dropped to 1.6%, compared to 1.9% in the previous month.
Such contrasting economic data between the U.S. and the Euro Area has had a noticeable impact on the EURUSD exchange rate. On Tuesday, EURUSD dropped by 0.62% to 1.10657. Given the strong job openings and steady recovery in managerial purchase indices in the U.S., contrasted with declining consumer price indices in the Euro Area, the market sentiment appears more favorable towards the USD. This discrepancy in economic performance strengthens the dollar while weakening the euro, thus leading to the observed decline in the EURUSD value. With no major events scheduled for the day, the trend is likely influenced by these recent economic reports and market reactions to them.
What can we expect from EURUSD today?
EURUSD on Tuesday dropped -0.62% to 1.10657. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at S1 1.10261 with break below could see further selling pressure towards S2 at 1.09866. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.11440 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.10455 would indicate selling pressure.
For the week to-date, take note that EURUSD is bearish as the pair posted lower by -0.93%.
Key levels to watch out:
R3 | 1.12231 |
R2 | 1.11836 |
R1 | 1.11246 |
Daily Pivot | 1.10851 |
S1 | 1.10261 |
S2 | 1.09866 |
S3 | 1.09276 |