EUR/USD today: the pair resumes a decline

The EUR/USD pair  accelerated the decline on the growth of pessimistic sentiment on Tuesday, which was caused by the expectation of a decrease in business activity in China, which caused an overall increase in pessimism in the market. Thus, this pair resumed the downward trend of the past week.

Events for today:

• 15:00 – S&P/CS Composite-20 composite housing cost index will be announced, excluding seasonal fluctuations (y/y) (Aug) USA.
• 16:00 – the US data will be published: CB Consumer Confidence Index (Oct) and incomplete sales index on the real estate market (m/m) (September).
• 22:30 – API weekly crude oil inventories will be released in the USA.

The general driver of the market remains negative sentiment, which increased pressure on risky assets and supported the American dollar. But American dollar’s growth remains limited by the upcoming US Federal Reserve meeting.

The EUR/USD pair fell to two-week lows at the level of 1.1070. Despite the growth of risks, the weakening of this pair is also limited by technical support levels: 1.1070 and 1.1050, which correspond to the lower border of the trading channel. And given the expectation of a cut in US Federal Reserve rates, a significant strengthening of the American dollar will also be limited. Resistance are marks: 1.1100 and 1.1120.

Read also: “Gold forms a reversal.
Correction before the resumption of growth”

Hanzenko Anton

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