The EUR/USD has decreased today and is expected to start a larger decrease as the United States economic data have come in better in the last hours, the US dollar index has edged higher again in the last hour, was pushed higher by the fundamental factors, the index is approaching the yesterday’s high from 96.43 level, the index could jump much higher in the coming period, this situation will push the greenback higher versus all its rivals.
The EUR/USD is expected to drop further as the rate has failed once again to make new highs, the price has failed to jump above the yesterday’s high from 1.1238 level.
The United States ISM Non-Manufacturing PMI has come surprisingly higher, has jumped from 51.4 to 57.1 points, exceeding the 53.1 prediction, signaling that the expansion continues, while the US Final Services PMI has increased from 51.9 to 52.3 points in September, has come above the 51.9 forecast. Moreover the Factory Orders rose by 0.2% in August, have come better compared to the specialists forecast, the prediction was -0.4%, the factory orders have increased for the second month in August and have helped the USD to jump higher on the short term.
The ADP Non-Farm Employment Change has disappointed today because the US has added only 154K jobs in September, has come under the 166K estimate, the indicator has come also below the 175K jobs from August, while the Trade Balance has decreased from -39.5 to -40.7 points in August, but have come in better than the -41.1B estimate.
The Euro has also decreased because the Euro-zone data have disappointed, the Retail Sales have decreased by 0.1%, matching expectations, while the Final Services PMI rose from 52.1 to 52.2 points, have beaten the 52.1 estimate, but unfortunately for the Euro, the Spanish, Italian and the French Services PMI has come worse, the services sectors have slowed down the expansion. The German Final Services PMI rose to 50.9, signalling that the expansion continues.

The rate has come to test the confluence area formed at the intersection of the ascending sliding line with the descending sliding line and now could drop again and could approach the yesterday’s low from 1.1137 level. The currency pair continues to move sideways on the short term, the price action has formed a triangle chart pattern, we’ll have a clear direction only when the rate will escape from the chart pattern. We’ll have a selling opportunity if the price will slip inside the descending pitchfork’s body and below the 1.1123 static support.

The rate is trading somehow at the half of the triangle pattern, will be better to stay away from this pair until we’ll have a clear direction, you can see that the rate is consolidating on the short term. We’ll have a bullish signal only if the rate will break above the upside line of the triangle and above the ascending and the descending sliding lines, so we’ll have to be patient to see what will happen.

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