Dear ,
As requested, let’s look at EURUSD and the recent events that happened in the previous trading session.
EURUSD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | -0.26% | -28.3 Pips |  |
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| Week to-date | -1.12% | -125.1 Pips | |
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| October | -0.83% | -91.9 Pips |  |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
In the Euro Area, the unemployment rate for August remained steady at 6.4%, showing no change from July, according to Eurostat. Additionally, there was a decline in key inflation indicators in September. The Core Harmonised Index of Consumer Prices (HICP) saw a decrease in its flash estimate to 2.7% from 2.8% in August. The Harmonized Index of Consumer Prices for the month also fell to -0.1% compared to the previous 0.1% in August. Eurostat also reported that the Core Harmonized Index of Consumer Prices (HICP) on a monthly basis dropped to 0.1%, down from 0.3% in the prior month. Similarly, the yearly Harmonised Index of Consumer Prices decreased to a flash estimate of 1.8%, down from 2.2% in August.
In the United States, the Bureau of Labor Statistics released data showing an increase in job openings for August, reaching 8.04 million. This marks a rise from the revised figure of 7.711 million for July. Such an uptick in the Job Openings and Labor Turnover Survey (JOLTS) illustrates a robust labor market, indicating strong demand for workers despite potential economic uncertainties.
The EUR/USD exchange rate dropped by 0.26% to 1.10447 on the day the data was reported. The decline in Euro Area inflation rates points to a weaker inflationary pressure, which can lead to speculations about potential monetary policy easing or maintaining dovish accommodations by the European Central Bank. On the other hand, the increase in U.S. job openings suggests a firmly growing labor market, reinforcing expectations of potential monetary tightening or sustained interest rate policies by the Federal Reserve. Together, these economic indicators contribute to strengthening the U.S. dollar relative to the euro, thus impacting the EUR/USD exchange rate.
What can we expect from EURUSD today?
EURUSD on Wednesday dropped -0.26% to 1.10447. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bearish as the pair posted lower in Wednesday trading session.
Looking ahead for the day, immediate support level is at S1 1.10237 with break below could see further selling pressure towards S2 at 1.10028. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.10828 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.10323 would indicate selling pressure.
For the week to-date, take note that EURUSD is bearish as the pair posted lower by -1.12%.
Key levels to watch out:
| R3 | 1.11247 |
| R2 | 1.11038 |
| R1 | 1.10742 |
| Daily Pivot | 1.10533 |
| S1 | 1.10237 |
| S2 | 1.10028 |
| S3 | 1.09732 |
