EUR/USD trims gains as stocks erase gains

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  • The US dollar recovers after the consumer confidence data for September.
  • Stocks pull away from highs as US 10-year yield hits new all-time highs.
  • EUR/USD cannot sustain recovery, remains above lows.

The EUR/USD continued to fall after the start of the American session and reached levels below 0.9600. It is hovering around 0.9620/25, around the 20-hour SMA, with no clear intraday direction. The strengthening of the US dollar weakened the recovery of the pair.

The dollar is happy about the US data.

Following the release of better than expected US Consumer Confidence data, the Dollar began to recover from intraday losses across the board. Economic data pushed US yields higher. The 10-year yield in the US rose to 3.97%, reaching the highest level since 2010.

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At the same time, US equities trimmed their gains. The Dow Jones fell more than 300 points, losing 0.07%, while the SP500 rose 0.08%. Stock indices remain unable to sustain a rebound, suggesting that fear and concern remain among market participants, favoring the dollar as investors seek a safe haven.

Comments from European Central Bank officials point to more rate hikes. De Guindos mentioned that the data will determine the trajectory. At the same time, in the US, Bullard warned that they have a serious inflation problem.

The 0.9600 zone is the key at the moment

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If the euro manages to recover above 0.9630, it could gain momentum for a retest of 0.9660, the latest protection of 0.9700. On the other hand, a consolidation below 0.9600 would expose the cycle low at 0.9548 (26 Sep low).

Technical levels

EUR/USD

Overview
last price today 0.9606
daily change today -0.0004
Today’s daily variation in % -0.04
Daily opening today 0.961
Trends
daily SMA20 0.9945
daily SMA50 1.0069
daily SMA100 1.0274
daily SMA200 1.0687
levels
Previous daily high 0.971
Previous Daily Low 0.9553
Previous Weekly High 1.0051
Previous Weekly Low 0.9668
Previous Monthly High 1.0369
Previous Monthly Low 0.9901
Daily Fibonacci of 38.2% 0.9613
Daily Fibonacci of 61.8% 0.965
Daily Pivot Point S1 0.9539
Daily Pivot Point S2 0.9467
Daily Pivot Point S3 0.9382
Daily Pivot Point R1 0.9695
Daily Pivot Point R2 0.9781
Daily Pivot Point R3 0.9852

Source: Fx Street

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