U.S. Markets closed
  • S&P 500

    4,704.54
    +15.87 (+0.34%)
     
  • Dow 30

    35,870.95
    -60.10 (-0.17%)
     
  • Nasdaq

    15,993.71
    +72.14 (+0.45%)
     
  • Russell 2000

    2,363.59
    -13.42 (-0.56%)
     
  • Gold

    1,861.20
    -0.20 (-0.01%)
     
  • Silver

    24.88
    -0.02 (-0.08%)
     
  • EUR/USD

    1.1369
    -0.0006 (-0.0568%)
     
  • 10-Yr Bond

    1.5890
    -0.0150 (-0.94%)
     
  • Vix

    17.59
    +0.48 (+2.81%)
     
  • GBP/USD

    1.3497
    -0.0003 (-0.0216%)
     
  • USD/JPY

    114.3040
    +0.0520 (+0.0455%)
     
  • BTC-USD

    54,412.59
    -3,510.43 (-6.06%)
     
  • CMC Crypto 200

    1,402.14
    -65.80 (-4.48%)
     
  • FTSE 100

    7,255.96
    -35.24 (-0.48%)
     
  • Nikkei 225

    29,683.09
    +84.43 (+0.29%)
     

EUR/USD is at Risk of Resuming Its Decline and Reaching Fresh 2021 Lows

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. EUR/USD Current price: 1.1596

  • Financial markets are in a better mood amid solid Q3 earnings reports in the US.

  • US Treasury yields stand at the lower end of their weekly range, weighing on the USD.

  • EUR/USD is at risk of resuming its decline and reaching fresh 2021 lows.

The EUR/USD pair retreated from a fresh weekly high of 1.1623, now trading in the 1.1590 price zone. The American currency is down across the board, as US government bond yields remain depressed, although it is up against the EUR and the CHF. Financial markets were in a better mood on Thursday amid solid Q3 earnings reports in the US. Even further, the US published the September Producer Price Index, which was up 0.5% MoM and 8.6% YoY, higher than the August readings although below the market’s expectations, while Initial Jobless Claims for the week ended October 8 printed at 293K, much better than the 319K expected.

Upbeat US data provided additional support to the market’s mood. The EU did not publish relevant macroeconomic data. The week with finish with a higher note, as the US will release September Retail Sales, foreseen at -0.2% MoM, and the preliminary estimate of the October Michigan Consumer Sentiment Index, expected at 73.1 from 72.8 previously. The EU will publish the August Trade Balance, expected to post a surplus of €16.1 billion.

EUR/USD short-term technical outlook

The EUR/USD pair is unchanged on a daily basis and may soon resume its slide. The daily chart shows that the pair met sellers around a firmly bearish 20 SMA, while technical indicators remain flat within negative levels. The long upward tail of the daily candle also supports a new leg lower ahead.

The 4-hour chart shows that the pair retreated after testing a bearish 100 SMA, which keeps sliding below an also bearish 200 SMA. The 20 SMA provides dynamic support at around 1.1550, while technical indicators hold into positive levels, with the Momentum advancing and the RSI consolidating. The pair needs to break above 1.1640 to turn bullish and shrug off the negative stance evident in the daily chart.

Support levels: 1.1550 1.1520 1.1475

Resistance levels: 1.1640 1.1685 1.1730

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.