OctaFX | OctaFX Forex Broker
Open trading account

EUR/USD extends towards 1.1300, USD keeps falling

FXStreet (Mumbai) - The EUR/USD pair found fresh bids at 50-DMA and stormed its way higher towards 1.13 handle in the mid-European trades on the back of renewed USD selling.

EUR/USD extends beyond 1.1250

The EUR/USD pair trades 0.62% higher at fresh daily highs of 1.1290, now attempting 1.13 handle. The major was caught by a fresh bid wave as the US dollar continues to be relentlessly offered as the latest US employment report casts doubts on the US economic prospects and boosts speculations over the delay in the Fed rate-hike prospects until early next year.

The EUR/USD pair also ignored the strong performance on the domestic equities as also lack lustre Euro zone services PMIs and retail sales data, as the main driver for the main currency pair remains the broad US dollar weakness.

Besides, a set of US services sector data including the final services PMI and the ISM non-manufacturing report will also have some bearing on the pair.

EUR/USD Technical Levels

The pair has an immediate resistance at 1.1300, above which gains could be extended to 1.1319 (Oct 2 High) levels. On the flip side, support is seen at 1.1216 (Today’s Low) which it could extend losses to 1.1149 (Oct 2 Low) levels.

USD: Wait till next year for Fed rate hike - MUFG

Lee Hardman, Currency Analyst at MUFG, suggests that at this stage it may prove too early to entirely rule out a rate hike from the Fed this year although the likelihood has diminished. The September non-farm payrolls report could exaggerate the weakening of US labour market conditions with other leading indicators still signalling a more favourable outlook.
Read more Previous

USD/JPY remains rangebound near term – OCBC

According to FX Strategist at OCBC Bank Emmanuel Ng, the pair could remain in a consolidative pattern in the short-term...
Read more Next
Start livechat