EURUSD pair is trading alongside an uptrend support line that has accompanied it since the beginning of the month. Here is the EURUSD outlook after German factory orders dropped.
October 7, 2019, | AtoZ Markets – EURUSD pair dropped towards the new week on the back foot after German Factory Orders fell by 0.6% monthly and 6.7% yearly in August. On the other hand, the monthly figures have already beaten the expectations, the drop and the miss in the yearly figures weigh. The euro-zone Sentix Investor Confidence which has been due for later today is expected to have negative effect on Euro.
EURUSD Outlook for 07 October 2019
These are the few global factors which might influence the EURUSD pair for the upcoming days:
- China has reportedly prepared the US an offer of a limited scope ahead of high-level trade talks on Thursday. China might see a weaker US administration that is ready to compromise.
- China might be acting in anticipation of compromises. US President Trump may seek to calm markets and improve his approval rating. Moreover, the American retreat from northern Syria which is abandoning the Kurds and allowing Turkey to come in. This may also be seen as a sign of weakness by China.
- Lastly, the worsening relations between the US and China increase the chances of the Fed Reserve cutting rates later this month. Hence, this might have a positive impact on the Dollar.
EURUSD is consolidating around the 1.09654 zones. Most probably, today the pair might break this level to the downside to reach the target at 1.0950. If this level is broken as well, EURUSD may continue trading inside the downtrend with the first target near 1.0900 level.
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