The EUR/USD has started the week at 1.16, holding last week’s losses. Concerns over China’s Evergrande, uncertainties about US infrastructure, and inflationary concerns are all weighing on morale. Fed speakers are being considered.
The EUR/USD pair is trading near the 23.6 % retracement of its most recent daily loss at 1.1645, which serves as immediate resistance. The 4-hour chart shows that technical indicators are heading firmly higher within positive levels, while the pair has moved beyond a still bullish 20 SMA, implying that a break over the indicated Fibonacci resistance level will favor a bullish extension. The 100 and 200 SMAs, on the other hand, maintain negative slopes considerably above the current level, implying that the latest increase may be merely corrective.
Support levels: 1.1600 1.1560 1.1520
Resistance levels: 1.1645 1.1680 1.1725
The EUR/USD pair is on the mend, with the price hovering around 1.1630. The dollar is falling, accelerating its decline ahead of Wall Street’s opening, as investors grapple with the fresh Chinese news. Evergrande, the ailing real estate conglomerate, has requested a trade suspension in response to the news of a big transaction. According to the report, the company will sell a majority stake in its property management business for more than $5 billion, indicating that it is still attempting to pay down its US$305 billion debt.
Asian stocks fell sharply, impacting on European indices, which had already recovered from intraday lows. Wall Street is expected to open with mild losses, as the initial risk-off emotion has subsided. Meanwhile, US Treasury rates have remained near the bottom of their daily range. The 10-year US Treasury note yield is currently around 1.47 percent, down from an intraday high of 1.50 % .
In terms of data, the EU reported October Sentix Investor Confidence, which surprisingly fell to 16.9 from 19.6, far lower than predicted. The US will release August Factory Orders, which are expected to be up 0.9 % year on year.