• Sun. Nov 3rd, 2024

EURUSD on Tuesday rose 0.67% to 1.11866. 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 Tuesday
Period Pct Chg Momentum
Tuesday 0.67% 74.3 Pips
Week to-date 0.23% 25.8 Pips
September 0.96% 106.2 Pips

Upcoming key events (London Time)

  Thu 01:30 PM USD GDP annual rate
  Thu 02:20 PM USD Federal Reserve Chair Jerome Powell speech

What happened lately

In the United States, the latest economic data reveals a modest improvement in the housing market. The U.S. House Price Index for July rose to 0.1%, a slight increase from the previous month’s figure of -0.1%. This positive change indicates a stabilization in house prices following a decline, suggesting a potentially brighter outlook for the housing sector. The information was sourced from the Federal Housing Finance Agency (FHFA).

Conversely, Germany’s economic sentiment appears to be worsening. The Germany ifo Business Climate Index, which measures the business environment’s health, dropped to 85.4 points in September from 86.6 points in August. This decline points to a deteriorating business climate, as reported by the ifo Institute. The continuous downward trend in this index reflects growing concerns among German businesses regarding the economic outlook.

The recent developments in economic data from the United States and Germany have different implications for the EUR/USD exchange rate. The slight improvement in U.S. house prices shows some strength in the U.S. economy, potentially leading to a stronger dollar. On the other hand, the weakening business climate in Germany points to economic difficulties within the Eurozone, likely adding downward pressure on the euro. These contrasting economic signals might justify why the EUR/USD rose by 0.67% to 1.11866 on Tuesday. Investors might be anticipating further movements by evaluating upcoming events such as the U.S. GDP annual rate release and a speech by Federal Reserve Chair Jerome Powell, both slated for Thursday. Any positive signals from these events could further support the U.S. dollar, possibly reversing the current upward trend of the EUR/USD pair.


What can we expect from EURUSD today?

EURUSD on Tuesday rose 0.67% to 1.11866. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for EURUSD looks bullish as the pair ended higher after Tuesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.12161 with break above could target R2 at 1.12456 or figure level area. While towards the downside, we are looking at daily low of 1.11029 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.11890 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 0.23% over the past few days.

Key levels to watch out:

R3 1.13022
R2 1.12456
R1 1.12161
Daily Pivot 1.11595
S1 1.113
S2 1.10734
S3 1.10439