InstaForex

November 8, 2021

NFP Pushes EUR/USD To Record Latest Lows 2021

 Continuing trading at the end of October until the opening of November, the USD remained unable to record a strengthening despite the release of very encouraging US NFP data last week.


Analysts assessed the US dollar's decline at the close of last week's trading as driven by profit -taking activity after the dollar index was seen to have recorded its latest one -year high.


A sharp decline in 10 -year US treasury yields which had fallen below the 1.50% level was also among the factors that caused the USD to fall slightly at the close of last week’s trade.




Checking the price movement on the EUR/USD pair chart, the price has once again created the latest 2021 low around 1.15135 after receiving pressure by the strengthening of the USD past the previous support at 1.15300.


The price movement was seen to continue to show a decline in the European session (Friday) until the beginning of the New York session and almost to hit the support zone of 1.15000 before the price rebounded.



The jump above 50 pips also seems to retest the Moving Average 50 (MA50) barrier level at the 1 hour timeframe but the price trend still remains bearish.


But if the price is able to break the resistance trendline, the price is likely to give an initial reaction to retest the SBR (support become resistance) zone of 1.16000.


However, if the movement occurs, it is likely that investors will start to see a change in the bullish trend which will indirectly evaluate the SBR zone at 1.17000 as the next target.


While the latest low of 1.15135 will also be the main focus of investors if the price still maintains the pattern to continue to make lower declines.


Analysts expect that the support zone at 1.15000 which is also the resistance zone in 2018 to 2020 trading is expected to be tested if the price continues to decline sharply.