EUR/USD today: the American dollar is under pressure from the Chinese yuan

Trading on the first day of November opened with a dollar collapse across the market, the EUR/USD pair was no exception. A very positive statistics on business activity in China (PMI) served as the driver for the sale of the American dollar. Against the background of the growth of the yuan, commodity currencies in the Asia-Pacific region (AUD and NZD) also received a support, which strengthened the sale of the American dollar across the marke spectrum.

Events for today:

• 15:45  –  PMI in the USA.
• 16:00 – block news on the US: ISM manufacturing employment index (October) and ISM index of business activity in the manufacturing sector (PMI)  (October).

The sale of the US dollar continues to be the main market driver, which, in turn, is limited by significant oversold.

EUR/USD is also in significant overbought on the decline of the American dollar. A significant psychological resistance for this pair is 1.1400 (MA 200) and 1.1420-30. It is worth noting that it is possible a very strong correction to support levels: 1.1370-50 and 1.1330, against the background of significant overbought.

Read also: “Analysis of cross-rates in relation to major currency pairs”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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