InstaForex

September 30, 2021

EUR/USD Continues to Decline to Record Latest Lowest 2021!

 The US dollar maintained a strengthening at the end of the September deck as investors again shifted their focus to speculation the Federal Reserve (Fed) will begin a measure of reducing bond purchases (tapering) in the near term.


The strengthening of the US dollar was also driven by a surge in US 10-year bond yields at 1.56% as well as risky sentiment factors such as the issue of Evergrande failing to clear its coupon payments.




However, investors need to be wary of trading at the end of September where there is a possibility of profit-taking activities that could change the direction of current price movements.


If you look at the price chart of the EUR/USD pair, the price movement has already declined more than 300 pips from the beginning of September after the price reached a high of 1.19000.


The decline has also pushed the price to create the latest low for 2021 to hit the level of 1.16000 after plunging 95 pips in yesterday's trading.


At the same time, the price also showed a bearish trend throughout September trading with the price movement continuing to remain at the level of the Moving Average 50 (MA50) barrier on the 1 -hour timeframe on the EUR/USD chart.



If the USD's strengthening momentum continues, the price may decline below the 1.16000 support zone to continue the bearish trend.


The lower decline is likely to reach as high as 1.15000 thus recording the most recent low for the year.


However, if the 1.16000 zone manages to support the price surge again, it is expected that the previous support zone level around 1.16700 will be tested again.


Beyond the resistance, the 1.17000 level will be the price focus level for investors to assess the price reaction in the zone for further indication of movement.