- EUR / USD moves to positive territory, consequent first rise in six days.
- After positive PMI data from Europe, now it’s the US turn.
The EUR / USD is rising marginally, bouncing after setting new lows in more than a month. The price fell to 1.1621, before climbing above 1.1650. In case of closing the day with profits, it would be able to cut a streak of five consecutive days with losses.
Those of the Eurozone PMIs that were known showed the region in expansion territory during the month of October. The best performing country was Germany. The data was above expectations, and slightly pushed the euro into the market. Operators’ attention seems to remain more focused on the future and on the evolution of the coronavirus with the new restrictions.
Several European countries are again imposing restrictions to curb infections, which will bring negative economic consequences. These have been one of the factors in the recent fall in stocks. Today the markets are rising, helping to weaken the dollar.
In the US, the PMI and ISM figures for the manufacturing sector will be released the day before the elections. They shouldn’t have much of an impact but they will be followed closely.
Technical overview
The EUR / USD remains with a markedly bearish bias, although in the very short term, to continue above 1.1650, the euro will be supported for a period of consolidation or recovery. At 1.1680 is the next major resistance.
In the opposite direction, a return below 1.1630 would increase downward pressures. The key support appears in the 1.1600 / 10 band, where in addition to being a key number it is where the September lows are.
Credits: Forex Street
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