EUR/USD Analysis – September 09, 2021

Pivot Point to Extend Resistance at 1.1820

After hitting a high of $1.1852 and a low of $1.1802, the EUR/USD was closed at $1.1813. The EUR/USD currency pair fell for the third straight session on Wednesday, owing to the strengthening of the US dollar. On Wednesday, the US Dollar Index jumped to 92.86 after the New York Federal Reserve Bank President hinted at reducing economic support.

Rather than focusing on monthly variations in employment growth, he said he was monitoring cumulative job numbers. Even if the jobs statistic does not show significant progress for the month, he believes the central bank will begin tapering by the end of the month.

On the data front, the French Final Private Payrolls for the quarter climbed to 1.4 percent, beating expectations of 1.2 percent and bolstering the single currency Euro. This, in turn, capped any losses in EUR/USD at 10:30 GMT. At 11:45 GMT, the French Trade Balance for July indicated a deficit of -7.0 billion euros versus an anticipated deficit of -6.2 billion euros, weighing on the Euro, which led to more losses in EUR/USD. At 13:00 GMT, the Italian Retail Sales for July fell to -0.4 percent, vs. a forecast of 0.3 percent, weighing on the single currency Euro and adding to the EUR/USD drop.

JOLTS Job Openings in July increased to 10.93M vs. the predicted 10.03M at 19:00 GMT, supporting the US dollar and adding to the loss in EUR/USD. The IBD/TIPP Economic Optimism for September fell to 48.5 from 55.3 expected at 19:02 GMT, weighing on the US dollar and limiting the slide in the EUR/USD pair.

On Wednesday, a day before the European Central Bank's monetary policy meeting, the single currency Euro was under pressure. PEPP purchases might fall as low as 60 billion euros per month, according to investors, down from the current 80 billion. These predictions have kept the Euro somewhat supportive, and losses in the EUR/USD currency pair have been restrained.

Market risk sentiment was also harmed by growing fears that the coronavirus's accelerated spread would stifle the economy's recovery. Because of the risk-off market sentiment on Wednesday, the riskier currency pairs were under pressure for the day, and the EUR/USD pair was also under pressure.

EUR/USD Intraday Technical Levels

Support Resistance

1.1792 1.1842

1.1772 1.1872

1.1742 1.1893

Pivot Point: 1.1822

EUR/USD - Technical Outlook

The EUR/USD is trading bearish, holding below a pivot point level of 1.1821. On the hourly timeframe, the pivot point is a resistance for the EUR/USD price at the 1.1821 level. Below this, the EUR/USD is exhibiting a bearish bias and is gaining immediate support at the 1.18016 level. A breakout below the 1.18016 level exposes the EUR/USD pair towards the following support areas of 1.1792 and 1.1770. Furthermore, the breakout of the 1.1772 level exposes the pair towards the next support area of the 1.1743 level.

On the other hand, the breakout of a resistance level of 1.1821 exposes the EUR/USD towards 1.1840 and 1.1870 levels. Since the EUR/USD is holding below the pivot point, the bearish bias dominates below 1.1821 and vice versa. All the best.