Since the beginning of this week, the US dollar has been losing ground against its main competitors. The dollar index (#DX) has updated local lows and reached 93.60. Investors are still concerned about the rapid spread of the COVID-19 virus. At the moment, the total number of infected in the world has reached 34 million. Financial market participants are focused on the debate between President Donald Trump and Democratic candidate Joe Biden. It should be recalled that the US presidential election is scheduled for November 3, 2020. We also recommend following up-to-date information regarding the negotiations in the US Congress on a new package of measures to stimulate the economy, as well as the situation concerning Brexit.
At the moment, financial market participants have taken a wait-and-see attitude before the publication of the report on the US labor market for September, on Friday, October 2. These statistics may have a significant impact on the dynamics of currency majors.
Recent reports from the US were quite optimistic. Preliminary data from ADP indicated an increase in the number of people employed in the nonfarm sector of the country by 749K, which is higher than the forecasted value of 650K. The consumer confidence index rose to 101.8 from 86.3. At the same time, the ISM manufacturing PMI slowed down to 55.4 from 56.0.
Let's consider the current technical pattern on the EUR/USD currency pair
- Support levels: 1.1700, 1.1675, 1.1615
- Resistance levels: 1.1770, 1.1845, 1.1900
- - The price has fixed between 50 MA and 100 MA;
- - The MACD histogram has started rising.
At the moment, the EUR/USD currency pair is consolidating. There is no defined trend. Local support and resistance levels are 1.1700 and 1.1770, respectively. Indicators do not give accurate signals:
We recommend opening positions from key levels.
If the price fixes above the resistance level of 1.1770, we expect further recovery in EUR/USD quotes. The movement is tending to 1.1820-1.1860.
An alternative could be the decline of the EUR/USD currency pair to the level of 1.1650-1.1610.
Confirmations and entry points to the market should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account