InstaForex

October 29, 2021

EUR/USD ‘Out of the Horns’, Price Rise Over the Weekend

 The release of US Gross Domestic Product (US) data for the third quarter in the New York session yesterday declined lower than expected has indirectly resulted in the performance of the USD currency ‘rolling’ to return to a weak move.


The unexpected issuance of figures also affected investors who began to lose confidence in the Federal Reserve (Fed) for plans to implement a tightening of ‘tapering’ policy in the near future.


The Euro continued to take the opportunity to strengthen in times of weakness in the USD despite the results of the European Central Bank's (ECB) policy meeting meeting expectations in maintaining interest rates.




Judging by the EUR/USD chart, the price is seen to have shown aggressive movement by recording a jump of more than 100 pips at the opening of the New York session yesterday (Thursday).


The surge also continued to fly high to test the SBR (support become resistance) zone of 1.17000 and completely truncated the previous high to record the latest 3 -week high.



However, the price movement seemed to pause the surge to hover inside the SBR zone before easing slightly in weekend trading in the Asian session today (Friday).


If the bulls manage to break the SBR zone of 1.17000, a more aggressive uptrend may be targeted towards the resistance zone at 1.18000 to maintain the bullish signal.


If the price movement returns to show a bearish pattern, the RBS (resistance become support) zone of 1.16000 will be tested again before the expectation will decline to lower levels.