Oct 31, 2022
VOT Research Desk
After finishing Friday at 0.9965, the EUR/USD pair is currently trading at 0.9920, losing territory this week.
The NBS Manufacturing PMI dropped to 49.2 in October, while the Non-Manufacturing PMI fell to 48.7, weak Chinese data that indicated the economy shrank more in October caused financial markets to open lower than expected on Monday.
China’s decision to place Wuhan under a stringent lockdown due to an increase in coronavirus cases added to market concerns.
Worrying EU data slammed the common currency in the meanwhile. German retail sales increased 0.9% month over month in September but decreased 0.9% from the same month last year.
According to the preliminary estimate of the Q3 Gross Domestic Product, the EU economy expanded by 0.2% in the three months to September, with annualized growth of 2.1%.lower than the prior 4.1%. The preliminary estimate for the EU Consumer Price Index for October came in at 10.7%, a new high and higher than the predicted 10.2%.
EUR/USD Technical Analysis Report:
Near the present price, at 0.9913, the EUR/USD pair’s bottom was reached. The cautious posture appears to have restricted the negative potential, although bulls have withdrawn.
The pair further declined after testing a bearish 100 SMA, as seen on the daily chart, and the 20 SMA is still moving north below the price at hand.
Technical indicators, however, are easing within positive ranges, reflecting the continuous decrease rather than pointing to further declines.
Chances tilt to the downside in the near term and according the 4-hour chart. The pair is moving lower than a flat 20 SMA, and the 100 and 200 SMAs are converging at 0.9830 with no discernible direction.
Despite the low intraday volatility, technical indicators remain in the negative range. A downward extension below 0.9900 should pave the way for a more significant loss over the course of the following few sessions.
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Levels of support: 0.9090 0.9865 0.9830 |
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Levels of resistance: 0.9965 1.0010 1.0055 |
