+84 888161016

24/7 Customer Support

Mon - Sunday: 24/24

Online store always open

EUR/USD sees choppy Friday, testing 1.06

October 20, 2023| Forex Market


  • The EUR/USD is catching some minor lift but mostly flat for Friday near 1.0600.
  • Broad market sentiment is seeing an improvement heading into the close, pushing down the US Dollar.
  • Next week to open quiet before a double-header PMI reading for both the EU and the US on Tuesday.

The EUR/USD kicked off Friday’s trading session near 1.0586 and has been keeping in a tight range for most of the day, dipping into an early low of 1.0565 before catching a choppy lift into the 1.0600 handle.

The Euro (EUR) caught a lift higher on Thursday, pinging 1.0616 after dovish comments from Federal Reserve (Fed) Chairman Jerome Powell pushed down market expectations of a quicker rate cut cycle in the future.

Friday sees limited action as investors position themselves ahead of the weekend closing bell before next week rounds the corner into a dual Purchasing Manager Index (PMI) reading for both the EU and the US.

Before that, Euro traders will see Monday’s latest EU Consumer Sentiment indicator, with October’s reading forecast to decline from -17.8 to -18.2, and then Tuesday brings the latest round of EU HCOB PMIs for October, where investors are expecting the headline composite figure to tick upwards into 47.4 from 47.2.

Following that will be the US’ S&P Global PMIs for October, with the services and manufacturing components are both expected to decrease slightly; the Services PMI is expected to slip from 49.8 to 49.5, while the manufacturing side is seen declining from 50.1 to 49.9.

EUR/USD Technical Outlook

The Euro is seeing some sideways momentum develop on the daily candlesticks, with the descending trendline from 1.1275 creating some rough chop on the charts, and topside pressure from the descending 50-day Simple Moving Average currently dropping through 1.0700. Bidders will have a difficult time getting past the last swing high into 1.0650 if momentum doesn’t develop soon, and the 200-day SMA is rolling over into a bearish stance just north of 1.0800.

On the low side, the last swing low into 1.0450 represents the near-term floor, and a bearish continuation leaves the EUR/USD exposed to further downside into fresh lows for 2023, with the nearest technical support at last November’s bottoms at 1.0222.

EUR/USD Daily Chart

EUR/USD Technical Levels


Source link

Categories: Trading tips

Get In Touch!

What type of Forex Tool(s) are you interested in ?
How can we reach you ?