InstaForex

November 5, 2021

Apparently EUR/USD is ‘Slowly Hot’, Finally Plunging Test Once Again 2021 Lows

 The USD traded weak at the time of the publication of the results of the FOMC meeting despite forecasts for the Federal Reserve (Fed) to implement a reduction in bond purchases in line with investor expectations.


However, the greenback dollar appears to be slow to warm up the engine in displaying a strengthening after the king of the currency finally managed to strengthen on Thursday.


The strengthening of the USD was also supported by US NFP data for the private sector and ISM survey services data published on Wednesday with very encouraging readings.


The release of the positive US NFP data is also expected to further strengthen investors' expectations for the release of the US NFP data to be released tonight to further strengthen the value of the USD.




Looking at the price chart of the EUR/USD pair, the price was seen moving slowly in Wednesday's trading before climbing again at the end of the session to pass the 1.16000 level.


However, when the opening of trading on Thursday, it seems that the price movement continued to plummet so that it re -tested the low of 2021 around 1.15300 with a decrease of more than 80 pips.



But the lows have supported a slight surge to close the market at the level of 1.15575 and remain moving below the Moving Average 50 (MA50) barrier level for a bearish trend signal.


If the price movement is able to maintain the downtrend, the low of 1.15300 is likely to be retested before declining to the nearest support zone at 1.15000.


The decline will also completely continue to hit the latest lows of 2021 and the support zone is the hardest resistance zone to break in 2018 to 2020 trading.


Meanwhile, if the price movement returns to show a climb, the SBR (support become resistance) zone of 1.16000 is likely to be tested again before expectations will continue to rise.


A higher rise will see the price heading to the next SBR zone at 1.17000 and will see the price give an early signal to make a bullish trend change.