Market news
03.11.2023, 21:29

EUR/USD closes its best-performing week since June amid weak USD

  • EUR/USD gained more than 1% on Friday, rising near 1.0730.
  • The USD, measured by the DXY index, will close with a 1.40% weekly loss.
  • The dovish stance of the Fed and weak NFPs from October made the USD tumble.

In Friday’s session, the EUR/USD soared to 1.0730, closing a 1.50% gaining week, its best performance since mid-June. 

The daily market movers for the pair included a broad USD weakness due to the Federal Reserve (Fed) changing its tone to a more dovish approach and hinting that it is approaching to the end of its tightening cycle on Wednesday. As a reaction, US Treasuries tumbled to their lowest level since September, with the 2,5 and 10-year rates falling to 4.84, 4.50 and 4.57%, which added further selling pressure on the Greenback.

On Friday, the US reported that the US economy added fewer jobs than expected in October, while the unemployment rate increased to 3.9% and average hourly earnings increased lower than forecasted. As the labor market is showing signs of cooling down, it fueled additional dovish bets on the Fed and according to the CME FedWatch tool, the odds of a 25 basis point hike in December declined to nearly 9%, exacerbating the downside for the USD.

The market’s focus will now shift to the incoming data as, despite changing its tone, the Fed left the door open for further tightening. Until December, the bank will get two additional inflation readings and an extra jobs report.

EUR/USD Levels to watch 

Upon evaluating the daily chart, a neutral to bullish outlook for the short term is seen, with the bulls gradually recovering their strength. The Relative Strength Index (RSI) points upwards in the bearish territory, hinting at a potential shift in momentum and bullish resurgence, while the Moving Average Convergence (MACD) histogram presents bigger green bars.

On the four-hour chart, the pair reached overbought conditions, indicating that in the immediate short term, a technical correction may be incoming. 

 Support levels: 1.0700, 1.0670, 1.0630.

 Resistance levels: 1.0750,1.0770, 1.0800.

 EUR/USD Daily Chart

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location