EUR/USD breaks above 1.0350, all attention on FOMC

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  • Consumer confidence rises above expectations in November.
  • New home sales unexpectedly rise 7.5% in October.
  • The S&P Global Composite falls more than expected in November.
  • EUR/USD soars to its highest level since Friday amid weaker dollar.

The EUR/USD It is trading around the 1.0375 area, at the highest level since Friday driven by the weakness of the dollar and awaiting the FOMC minutes. The dollar lost momentum after the publication of economic reports.

The pair broke above 1.0350 and gained strength. If it continues to rise, the next resistance zone lies at 1.0400. On the other hand, a drop below 1.0320 would weaken the current intraday uptrend.

The dollar falls after the US data.

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The USD is losing ground across the board as US yields fall. The DXY falls 0.83%. The US 10-year yield fell to 3.70%, while the 2-year yield fell to 4.47%.

On Wednesday, economic data showed jobless claims surged to multi-week highs, offset by a larger-than-expected rise in durable goods orders. Most recently, S&P Global’s November flash PMI showed the composite index declining to 46.3 from 48.3, below the market consensus of 47.7. New home sales increased 7.5%, beating expectations. The University of Michigan Consumer Sentiment Index recovered from 54.7 to 56.8, above the 55 expected.

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Later on Wednesday, the Federal Reserve will release the minutes of its last meeting. Market participants will be looking for clues about a possible slowdown in rate hikes. “We expect the minutes to put a lot of emphasis on the likelihood that the terminal rate will end up being higher than initially anticipated. The Fed still needs to tighten the labor market to align wage and household spending growth with rates more consistent with the inflation target,” TD Securities analysts said.

On Thursday, Wall Street will be closed due to Thanksgiving. In Japan, the Jibun Bank Manufacturing PMI and leading index will be released.

technical levels

EUR/USD

Overview
Last price today 1.0368
today’s daily change 0.0068
Today’s daily change in % 0.66
today’s daily opening 1.03
Trends
daily SMA20 1.0114
daily SMA50 0.994
daily SMA100 1.0024
daily SMA200 1.0403
levels
previous daily high 1.0308
previous daily low 1.0237
Previous Weekly High 1.0482
previous weekly low 1.0272
Previous Monthly High 1.0094
Previous monthly minimum 0.9632
Daily Fibonacci of 38.2% 1.0281
Daily Fibonacci of 61.8% 1.0264
Daily Pivot Point S1 1.0256
Daily Pivot Point S2 1.0211
Daily Pivot Point S3 1.0185
Daily Pivot Point R1 1.0327
Daily Pivot Point R2 1.0353
Daily Pivot Point R3 1.0398

Source: Fx Street

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