October 1, 2021

EUR/USD Failed To Benefit Opportunity Rising At The Close Of September

 It seems that the strengthening exhibited by the US dollar during the end of September trading ended with a gloomy situation when it returned to weaken which may have been influenced by profit taking activity.

Investors remain vigilant to await a hint by Federal Reserve (Fed) Chairman Jerome Powell on expectations of policy tightening measures with an assessment of the U.S. NFP jobs report to be published next week.

Even so, the Euro is seen as still weak and unable to capitalize on the opportunity to rebound at a time when most other major currencies have rebounded against the USD.

The data in tonight’s New York session i.e. the US manufacturing PMI data of the ISM survey will be the focus of investors which will influence the movement of the USD before this week’s trading ends.

If evaluated on the price chart of the EUR/USD pair, the price movement remains showing a decline up to the level of 1.15700 to record the latest low of 2021.

The price is seen to have already shrunk past the 1.16000 level and remain moving below the Moving Average 50 (MA50) barrier level to signal the price bearish trend movement.

The decline is also seen as giving a hint of declining lower and being able to reach the 1.15000 level to complete the double top pattern on the weekly movement framework.

The 1.15000 level was once a price resistance in the early March rise before being successfully broken in July 2020 trading.

However, if the price rebounds, the SBR (support become resistance) zone of 1.16000 is expected to be retested and will be evaluated by investors to anticipate the next direction of movement.

The next SBR zone around 1.17000 will be the focus level to target which is a strong level tested last week before being successfully broken at the beginning of this week’s trading.