Choppy Sessions in Play
The EUR/USD ended the day at $1.1566, having reached a high of $1.1574 and a low of $1.1513.EUR/USD remained consolidated during Friday's trading session. However, it succeeded in gaining some of its previous session's losses. The US Dollar Index reached its highest since late September 2020 at 94.62 as the NFP data favored the local currency. However, the currency experienced significant selling amid profit booking, which ultimately dragged its prices towards the 94.32 level, ultimately supporting the currency pair EUR/USD's upward momentum on Friday.
On the data front, the German Industrial Production in September dropped to -1.1% against the forecasted 1.1% and weighed on the euro, which capitulated further gains in the EUR/USD currency pair. At 12:45 GMT, the French Industrial Production also declined to -1.3% against the anticipated 0.0%, which limited the gains in the currency pair EUR/USD. The French Prelim Private Payrolls for the quarter also fell to 0.5% against the expected 0.6% and weighed on the euro, which capped gains in the EUR/USD currency pair.
At 14:00 GMT, Italian retail sales increased to 0.8% from 0.2% expected, bolstering the single currency euro and adding to the EUR/USD currency pair's gains. The whole bloc declined to-0.3% against the estimated average of 0.2% and weighed on the euro. That also limited the rise in the EUR/USD pair.
On the US front, at 17:30 GMT, the average hourly earnings remained flat with an estimate of 0.4%. The Non-Farm Employment Change increased to 531K against the projected 455K. The US unemployment rate also fell to 4.6% against the predicted 4.7% and supported the US dollar, which capitulated further gains in the EUR/USD pair.
The US Labor Department reported that Americans created about 531K jobs during September, which was higher than the expected level of 455K. The number of jobs created by Americans was at its highest since July 2021, and this fact added to the expectations that the Fed might soon announce an interest rate hike as employment figures reached closer to the targeted level.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1564
EUR/USD - Technical Outlook
On Monday, the EUR/USD bounced-off to trade at the 1.1565 level, having bounced-off above the support level of 1.1550. On the 4-hour timeframe, the EUR/USD has violated the pivot point level of 1.1550, which is now exposing the pair towards the next resistance levels of 1.1588 and 1.1610.
Further, on the higher side, the breakout of the 1.1610 level exposes the EUR/USD pair towards the 1.1647 level. On the down side, the EUR/USD’s support holds around 1.1550 and below this, the next support prevails at 1.1528 level. Further on the lower side, EUR/USD’s next support stays around 1.1513 level, which is extended by the previously placed low level on Friday. The MACD and RSI are in support of a buying trend. However, they are tossing above and below crossover levels. This demonstrates a sort of indecision among investors and looks like they are waiting for economic events from the Eurozone and the US to determine further trends in the market. All the best!
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