OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/USD drops to 100-DMA

FXStreet (Mumbai) - The offered tone on the EUR continues to strengthen in early Europe, pushing the EUR/USD pair to down to its 100-DMA located at 1.1141 levels.

Deflation weighs over the EUR

The common currency is a victim of the heightened expectations that the European Central Bank may have to do more in order to combat deflationary forces. The Eurozone preliminary CPI reading released on Wednesday showed the 17-nation currency bloc fell back into deflation.

Meanwhile, the stability in the equity markets also added to the bearish pressure on the EUR. The immediate focus is now on the final manufacturing PMI reports due for release later today. In the US session, the ISM manufacturing report could hog the limelight.

EUR/USD Technical Levels

At 1.1145, the immediate support is seen at 1.1141 (100-DMA), under which the pair could drop to 1.11 levels. On the other side, resistance is seen at 1.1171 (200-DMA) and 1.12 levels.

US: September ISM manufacturing index in focus - TDS

Prashant Newnaha, Rates Strategist at TD Securities, suggests that in US, investors focus will shift on the September month’s ISM manufacturing index ahead of Friday’s payrolls, with stark deterioration in regional manufacturing indicators leading us to lower our forecast to 50.0 (market at 50.6) and cite downside risks.
Read more Previous

EUR/JPY unchanged, challenging 134.00

EUR/JPY is navigating a narrow range during the second half of the week, currently deflating to the 134.00/133.90 band...
Read more Next
Start livechat