InstaForex

November 1, 2021

EUR/USD Plunges 150 Pips At The End Of October!

 At the close of October trading, the USD returned to dominance after being supported by a 10 -year surge in US treasury yields.


At the same time, the strengthening of the personal consumption expenditure (PCE) price index data as well as the slight profit taking activity have supported the value of the USD.


The ISM Boxing US Manufacturing PMI data to be published in the New York session will be a reference for investors to see if the USD can continue to strengthen or not.


Monitoring the price movement on the EUR/USD chart, the price still seems to fail to break the SBR (support become resistance) zone of 1.17000 to plunge back.


The downtrend has also slipped over 150 pips starting at the beginning of the Asian session (Friday) all the way to the New York session to test the 2021 lows around 1.15300.


However, entering the end of the session, the price movement was seen to increase slightly before moving slowly at the opening of the trading session for November.



If the price continues to be pressed to display bearish action, the resistance level of 1.153000 is expected to be tested again and investors will probably evaluate the reaction of the movement at that level.


While the nearest support zone at the level of 1.15000 is likely to be able to be reached and indirectly will make the lowest level for the latest 2021.


Assuming the price movement rebounds, the earliest resistance zone at 1.16000 may be reached again before the price signals a clearer movement.


An increase beyond the resistance zone will see the price signal to make a bullish trend change and is expected to once again test the SBR 1.17000 zone.