October 14, 2021

EUR/USD Returns To Fierce Action With A Surge Of 70 Pips

 Once again the USD continues to give annoyance to investors following the release of US inflation data which published positive readings still failed to drive the strengthening of the USD.

The weakness of the USD is likely driven by the 10 -year US treasury yield which has plunged to 1.55% after it hit a high of around 1.64% earlier in the week.

Following the USD volatility, the Euro currency is seen to have taken the opportunity to strengthen after once the price hit its lowest level since July 2020 against the USD on Wednesday.

Judging by the chart of the EUR/USD pair, the price movement does not seem to be able to break last week's support level around 1.15300 to return to show an aggressive surge.

The highlighted increase also gave an early signal to make a trend change after the price movement managed to pass the Moving Average 50 (MA50) barrier level in the 1 -hour timeframe.

The price is also seen showing an increase of close to 70 pips yesterday and has retested the SBR (support become resistance) zone of 1.16000 in the Asian session today (Thursday).

If the price is able to break the SBR zone, the price movement is likely to continue the bullish trend which is more obvious for expectations heading to the SBR zone 1.17000.

A more ‘violent’ surge will see the price heading to the next resistance level at 1.18000 which will be the focus level as well as will record the latest 3 -week highs.

On the other hand, if the price movement on the EUR/USD chart declines again, the support zone 1.15300-1.15000 will be tested again and is expected to negate the bullish trend that is to be displayed.