Euro/US Dollar hits its lowest level since November 2020, amid growing concerns that the Federal Reserve will taper stimulus from November and start hiking rates next year. The US dollar index 1-year high on Thursday following the release of US GDP data and Fed Chair Powell reiterated his view that a rise in a surge in inflation is transitory.
Meanwhile, the currency pair slightly rebounded during the early session but failed to hold the bullish momentum after the release of weaker-than-expected German economic data. Germany Manufacturing PMI came slightly lower to 58.4 in September from a preliminary of 58.5.
Moving ahead to the North American session, the main attraction for EURO today:
- US – PCE inflation: GMT – 12.30
- US –ISM Manufacturing PMI: GMT – 14.00
EURUSD hovers near 1- year low as the US dollar index holding the previous month gains. However, considering the recent sell-off near-term pullbacks from 1.1650 support remain corrective in nature. So, in the short term, the pair may rebound towards 1.1620 and 1.1660 resistance levels. A breakdown through 1.1550 would negate that bias and suggest a test of the 1.1500 and 1.1480 support regions. In the long term, I expect 1.1500 and 1.1920 are the key technical levels to watch.
Read more- https://gulfbrokers.com/en/eurusd-time-to-retrace