The better tone surrounding the greenback is now forcing EURUSD to ease further ground and challenge 2-day lows around 1.1370. What is next? Gain insight into today’s technical outlook.
November 5, GKFX – Spot is down for the second session in a row on Monday, coming under renewed selling pressure and putting Friday’s low in the 1.1370 zone to the test, always against the backdrop of the continuation of the bid tone in the buck.
EURUSD Now Looks to US data
Renewed US-China trade jitters, omnipresent uncertainty around Brexit and October’s solid report from the US labour market (published last Friday) are all collaborating today with the down move in the pair.
In the data space, the Sentix index – which gauges the investors’ confidence in the euro bloc – dropped to 8.8 for the current month, coming in below expectations and down from October’s 11.4.
Across the Atlantic, final Services PMI for October are due ahead of the more relevant ISM Non-manufacturing for the same period.
EURUSD Technical Outlook
At the moment, the pair is down 0.18% at 1.1369 and a break below 1.1334 (low Oct.26) would target 1.1316 (200-week SMA) en route to 1.1301 (low Oct.31). On the flip side, the next up barrier aligns at 1.1458 (high Nov.2) seconded by 1.1508 (low May 29) and finally 1.1550 (high Oct.22).
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