EUR / USD started trading on Thursday falling to a five-week lows at 1.1683. Subsequently, the pair has regained ground, rising more than 40 pips to reach a daily high of 1.1725 in the early stages of the European session.
The Federal Reserve and its chairman Jerome Powell were upbeat at yesterday’s meeting, which boosted the dollar. Powell advanced that in the meeting of November could be announced when the reduction of stimuli will begin. The president added that the adjustment will end in mid-2022, and to give it more emphasis, he assured that the next publication of the Non-Farm Payrolls of the United States does not need to offer very good figures for this to happen.
The DXY dollar index soared after the announcements, reaching its highest level since August 20 at 93.52. At this time, the momentum has moderated, and the greenback is moving around 93.26, losing 0.22% daily.
Today, traders will be very aware of the preliminary manufacturing and services PMI data to be published by Germany, the Eurozone and the United States for the month of September. These indicators are expected to strengthen on all fronts. The US will also release its weekly jobless claims for the week of September 17 and the Chicago Fed National Activity Index.
The Bank of England will announce its monetary policy decision today, and any hint about the start of a reduction in stimulus could affect the EUR / USD.
EUR / USD Levels
With the pair trading at time of writing above 1.1720, gaining 0.28% daily, the next resistance appears at 1.1755, yesterday’s high. Above this level, the main barrier will be in the psychological zone 1.1800. To overcome it, the objective will be 1.1845, ceiling of September 14.
Should it decline again, a break from today’s low can lead to the 2021 low in 1.1664 recorded on August 20. The support awaits below 1.1622, floor of November 2, 2020, and the area 1.1600/02, floor of November 4, 2020.
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