EUR/USD Eyes 1.2900 As Bulls Gain Strength

FXOpen

After a long descending wave from May to October 3rd, the Euro got back to life against the US counterpart on October 6. The Euro enjoyed this ride following the dovish sentiment expressed by the FED officials and the soft US retail sales figure. The bullish wave extended the price up to 1.2889 during the Wednesday session. The Thursday session opened at 1.2837 and made the daily closing at 1.2808.The price made the retracement form 1.2836, the 23.6 Fibonacci level.

eee

As of this writing, the pair is being traded around 1.2823, with the bulls trying to retain the power. The trend line and 50 SMA are in favor of price to move up towards the 1.2958 level. It may then start the next descending wave towards 1.2586, as indicated by the trend line just ahead of the release of the US Michigan Consumer Sentiment Index.

Fundamental Analysis

The economic calendar contains the release of the US Reuters Consumer Sentiment Index and the Spain’s Trade Balance.

Reuter’s Consumer Sentiment Index

The Reuters Consumer Sentiment Index for this October is forecasted at 84.1 points. It means that economists and analysts are not optimistic this time as compared to the 84.6 points, the reading of September. Generally speaking, a high reading is considered positive for the US Dollar while a low reading is seen as bearish. The US dollar may show bearish sentiment if the actual outcome is even lower than the forecasted one.

Trade balance

Trade balance for this October remained negative at -2.77B Euro, more than that of the September which was -1.82B Euro. A negative reading reflects decreased competiveness of the economy and is therefore bearish for the euro.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.