OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/USD Bulls in control, heading towards 1.1500

FXStreet (Mumbai) - The EUR/USD pair extends its winning streak into a sixth day today and hovers near two-month highs in the early trades, gathering pace to conquer 1.15 handle.

EUR/USD faces strong hurdle at daily R3

The EUR/USD pair trades 0.10% higher at 1.1486, and within a shouting distance of the 1.15 barrier. The major extends its recovery from a drop to hourly 20-SMA located near 1.1460 in early Asia and now looks to attack 1.1500 levels, the strongest since Aug 26.

The EUR/USD pair remains well bid this session after
the markets shrugged off Fed rate hike prospects for this year, especially after Wednesday’s poor US retail sales and PPI figures. Thus, adding to the ongoing weakness in the greenback.

However, the gains may remain capped as the rebound in Asian indices continues to lift the overall market sentiment and hence, markets now predict a positive start for the European stocks. Japan’s Nikkei trades 0.84% higher towards closing hours while the Shanghai composite rallies +1.76%.

Looking ahead, markets await the European opening bells ahead of the US data releases for further cues on pair amid a data-deficient EUR calendar.

EUR/USD Technical Levels

The pair keeps the bid tone intact, supported by higher daily RSI and the pivot. On its way up, the major faces immediate resistance at 1.1490/92 (daily high & H1 R3), beyond which 1.1562 (Aug 26 High) would be tested. While the immediate support is located at 1.1459/62 (hourly 20-SMA & today’s low), a breach of the last would expose 1.1416 (hourly 50-SMA & 5-DMA).

US Beige Book: Stronger greenback weighing on manufacturing and tourism - TDE

Michael Dolega, Senior Economist at TD Economics, notes that the most recent Beige Book, for the survey period between mid-August and early-October, indicated that stronger greenback weighed on manufacturing and tourism , but domestic-exposed sectors appeared healthy.
Read more Previous

NZD: Manufacturing PMI and consumer confidence on a high - TDS

Prashant Newnaha, Rates Strategist at TD Securities, notes that today’s release of manufacturing PMI and consumer confidence renewed confidence in the Kiwi economy as both of these data sets pointed economic revival.
Read more Next
Start livechat