October 12, 2021

EUR/USD ‘Slips’ Again, Investors Expect US Inflation Data

 Market sentiment rated risky by investors earlier in the week has supported the re-strengthening of the US dollar as a safe-haven currency.

Among the factors in focus was the latest report on Evergrande missing out on foreign dividend payments again causing concern in the market.

But investors remain vigilant ahead of US inflation data to be released on Wednesday for an indication of monetary policy by the Federal Reserve (Fed) after focusing on last week's NFP report.

The US dollar is seen to have managed to strengthen again against the Euro last week's strengthening momentum stagnated.

As for the Euro, investors will focus on the release of European economic sentiment survey data particularly in Germany in the European session soon.

On the price chart of the EUR/USD pair, the price is seen moving horizontally above the support level of 1.15300 reached last week continuing to the beginning of this week.

The strengthening of the US dollar yesterday pushed the price back to the 1.15500 level in the New York session, thwarting initial attempts to raise prices.

The decline is seen to re-test the support zone 1.15300-1.15000 for the price to continue to hunt the latest lows for 2021.

For the bullish situation, the resistance level at 1.16000 will be the focus to be tested before the price continues to rise higher and signals a change in the bullish trend.

The next rise is expected to return to the price zone around 1.17000 after the price fell below that level in late September trading.