The EURUSD currency pair is currently trading at 1.0572, showing slight increases of 0.06%. This is influenced by the release of weaker German inflation data and concerns over a potential US government shutdown, which are impacting the market prices.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• EUR/USD trades at 1.0572, registering marginal gains of 0.06%, as softer German inflation data and US government shutdown fears impact prices.

The pair currently trades last at 1.05731.

The previous day high was 1.0579 while the previous day low was 1.0491. The daily 38.2% Fib levels comes at 1.0545, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0525, expected to provide support.

The EUR/USD clings to its early gains after traveling towards a daily high of 1.0617 but offers dragged prices below the 1.0600 mark. This happened despite data from the United States (US) diminishing the chances for a November rate hike by the US Federal Reserve (Fed). At the time of writing, the major trades at 1.0572 register marginal gains of 0.06%.

The US Bureau of Economic Analysis (BEA) revealed the latest inflation report, preferred by the Fed, as the Core Personal Consumption Expenditures (PCE), which excludes volatile items rose by 3.9% YoY, below July’s 4%. The same report showed that headline inflation stood at 3.5%.

A poll from the University of Michigan (UoM) recently showed that consumer sentiment deteriorated while inflation expectations were gradually revised.

In the meantime, Wall Street began to erase its earlier gains, after news emerged of an impending US government shutdown. According to Reuters, “The House of Representatives rejected in a 232-198 vote a measure to fund the government for 30 days to give lawmakers more time to negotiate. That bill would have cut spending and imposed immigration and border security restrictions, Republican priorities that had little chance of passing the Democratic-majority Senate.”

That sponsored a late rally in the Greenback (USD), as the US Dollar Index (DXY) erased its earlier losses, printing minuscule gains of 0.06%, and reclaimed the 106.00 mark.

Across the Atlantic, German inflation data for September was softer than expected, echoing the report for the Eurozone (EU) with its Harmonized Index of Consumer Prices (HICP) hitting 4.3% YoY, down from 5.2% in August, while core figures rose by 4.5% YoY, beneath the 4.8% estimated. Additional data portrayed Germany’s spending as shrinking, as Retail Sales plunged -2.3%, below the -0.7% contraction estimated, and worse than July’s -2.2% drop.

Given the fundamental backdrop, the EUR/USD could extend its losses in the foreseeable future. A daily close below the 1.0600 mark could cement the case for the major to extend its losses past the YTD low toward the November 30, 2022, swing low at 1.0290.

The EUR/USD remains downward biased, despite upward correcting towards a daily high of 1.0617. However, if buyers want to test the latest cycle at the September 12 high at 1.0768, they need to achieve a daily close above 1.0600 and surpass key resistance levels. On the downside, also the path of least resistance, the first support would be the September 27 low of 1.0488, followed by the year-to-date (YTD) low of 1.0482.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.057 at the time of writing. Pair opened at 1.0565 and is trading with a change of 0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0676, 50 SMA 1.0834, 100 SMA @ 1.0861 and 200 SMA @ 1.0829.

The previous day high was 1.0579 while the previous day low was 1.0491. The daily 38.2% Fib levels comes at 1.0545, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0525, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0511, 1.0457, 1.0423
• Pivot resistance is noted at 1.0599, 1.0633, 1.0687

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...