InstaForex

November 9, 2021

NFP Effect Still Not Driving EUR/USD To Decline Lower

 Investors are expected to continue to be cautious towards the USD, with the release of US inflation data on Wednesday which will be the focus of the market.


That is, the Federal Reserve (Fed) is waiting for every data and sentiment to come to complete the policy tightening measures, namely 'tapering' as planned.


Meanwhile, the Fed's hasty speech in raising interest rates a little has benefited other riskier assets than the king of the currency.




Monitoring the price chart of the EUR/USD pair, the price was seen rising higher testing the SBR (support become resistance) zone of 1.16000 in the New York session (Monday) before declining slightly.


The price movement also seems to have passed the resistance trendline as well as the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to give an early signal of a trend change.


However, a slight decline at the end of the session is expected to see a price correction at the level around 1.15600-1.15700 as well as the MA50 level before resuming the uptrend.



The continued rise is likely to break the SBR zone of 1.16000 to continue flying to reach the resistance zone at 1.17000 and will be evaluated by investors to see the next reaction.


The resistance zone is also a 4 -week high ever recorded at the end of October trading.


Assuming the price movement continues to decline lower pressed by the strengthening of the USD, the lows around 1.15135 will likely be tested before entering the support zone of 1.15000.


The decline entering the support zone will indirectly create the latest lows for 2021 and may give the impression that prices will plummet even more.