#EURUSD @ 1.05620 loses traction around the mid-1.0500 in early Monday.

…
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 loses traction around the mid-1.0500 in early Monday.

The pair currently trades last at 1.05620.

The previous day high was 1.0597 while the previous day low was 1.0536. The daily 38.2% Fib levels comes at 1.0574, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0559, expected to provide support.

The EUR/USD pair posts losses during the early Asian trading hours on Monday. In the busy week in terms of economic data release, traders will take cues from the German growth number and Eurozone GDP and inflation data ahead of the highly-anticipated Federal Reserve (Fed) meeting on Wednesday. The major pair currently trades near 1.0557, losing 0.07% for the day.

The market anticipates that European economic conditions to continue deteriorating. The German Gross Domestic Product (GDP) is expected to contract by 0.3% QoQ from 0.2% expansion in the previous reading. The Eurozone GDP is forecast to decline to 0.2% from 0.5% in the previous reading. Finally, Eurozone HICP is expected to drop from 4.3% to 3.4% in October.

On the US Dollar front, the Federal Reserve (Fed) is expected to hold interest rate unchanged at the end of its two-day meeting on Wednesday. Late last month, Fed Chair Jerome Powell stated that inflation is still too high and this raised the expectation that additional rate hikes by the end of the year cannot be ruled out. That being said, the higher for longer rate narratives in the US could lift the USD and act as a headwind for the EUR/USD pair.

About the data, the Core US Personal Consumption Expenditure Index (PCE) arrived at 3.7% YoY in September versus 3.8% prior. The monthly figure climbed to 0.3% from 0.1% in the previous reading. Additionally, September’s headline PCE Price Index came in at 3.4% YoY versus the expected 3.4%.

Market participants will keep an eye on the German Gross Domestic Product (GDP) for the third quarter (Q3). Also, the preliminary Spanish Consumer Price Index (CPI) for October and the German CPI will be released later on Monday. Later this week, German Retail Sales, Eurozone GDP, and Eurozone inflation data will be due on Tuesday. The spotlight this week will be the Fed monetary policy meeting on Wednesday. This event might trigger the volatility in the financial markets and give a clear direction to the EUR/USD pair.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0557 at the time of writing. Pair opened at 1.0564 and is trading with a change of -0.07 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.0561, 50 SMA 1.066, 100 SMA @ 1.0819 and 200 SMA @ 1.0814.

The previous day high was 1.0597 while the previous day low was 1.0536. The daily 38.2% Fib levels comes at 1.0574, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0559, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0534, 1.0504, 1.0473
• Pivot resistance is noted at 1.0596, 1.0627, 1.0658

[/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...