Bearish View
- Sell the EUR/USD pair and set a take-profit at 1.0700.
- Add a stop-loss at 1.0900.
- Timeline: 1-2 days.
Bullish View
- Set a buy-stop at 1.0815 and a take-profit at 1.0900.
- Add a stop-loss at 1.0700.
The EUR/USD exchange rate’s sell-off stalled after the US published mixed consumer confidence and JOLTS job vacancy numbers. It was trading at 1.0800 on Wednesday morning, a few points higher than this week’s low of 1.0762.
Top Forex Brokers
US Consumer Confidence Jumps
The EUR/USD pair stabilized after a report by the Conference Bureau showed that consumer confidence jumped sharply in October. It soared from 99.2 in September to 108.7, higher than the median estimate of 99.5.
Rising consumer confidence is an important signal that the American economy is doing well since their spending is its biggest constituent.
Another report showed that house prices remained steady in August. The house price index rose from 0.2% in July to 0.3% in August, higher than the median estimate of 0.1%. It rose by 4.2% on a year-on-year basis.
The other important report came from the Bureau of Labor Statistics (BLS), which showed that the number of job openings fell from 7.86 million in August to 7.44 million in September.
The next few days will be important for the US dollar as the US is set to publish several important economic numbers that will influence the Federal Reserve.
On Wednesday, the Bureau of Economic Analysis will release the first estimate of Q3 GDP data. Economists expect the numbers to show that the economy grew by 3% during the quarter, a strong reading.
ADP will also release the October private payroll data, which will come two days before the official NFP numbers. A strong jobs report will point to a less dovish Federal Reserve when it meets next week.
The other key EUR/USD news will be the latest European and German GDP data for the third quarter.
EUR/USD Technical Analysis
The EUR/USD exchange rate has been in a strong downward trend in the past few days. It formed a double-top pattern at 1.1195 and recently dropped below the key support at 1.1000, its lowest level on September 12.
The 50-day and 100-day moving averages have formed a bearish crossover pattern. Also, the MACD indicator has dropped below the zero line, while the Money Flow Index (MFI) has been in a downward trend.
Most notably, the pair has retested the ascending trendline that connects the ascending trendline that connects the lowest point since October last year.
Therefore, more downtrends will be confirmed if the pair drops below this uptrend. If this happens, the next point to watch will be at 1.0595.
Ready to trade our free daily Forex trading signals? We’ve shortlisted the best forex brokers in Europe to check out.