EUR/USD Consolidates Losses Near the 2021 Low at 1.1528 and Could Fall Further

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EUR/USD Current price: 1.1553

• Weak European macroeconomic data continues to undermine demand for the EUR.
• US employment-related data resulted encouraging ahead of the Nonfarm Payrolls report.
• EUR/USD consolidates losses near the 2021 low at 1.1528 and could fall further.

The EUR/USD pair trades in the 1.1560 price zone, barely up on Thursday, despite a much better market mood. Global stocks advanced following news that US Senate majority leader Chuck Schumer announced an agreement on extending the debt ceiling by $408 billion until early December. However, the better market mood could not offset EUR weakness, as the common currency remains on the backfoot amid poor local data. Germany published August Industrial Production, which fell by 4% MoM, much worse than the -0.4% expected. The annual reading was 1.7%, well below the 11.4% expected.

The US published September Challenger Job Cuts, which rose 14% to 17,895 from the 24-year low of 15,723 cuts announced in August. Also, Initial Jobless Claims for the week ended October 1 printed at 326K, better than the 348K expected. The country will release the Nonfarm Payrolls report on Friday, expected to show that the country added 488K new jobs in September. The Unemployment Rate is foreseen at 5.1% from 5.2% in the previous month.

EUR/USD short-term technical outlook

From a technical point of view, the daily chart shows that the EUR/USD pair is still at risk of falling. In the mentioned time frame, the pair trades far below all of its moving averages, which maintain firmly bearish slopes. At the same time, technical indicators continue consolidating within negative levels.

 The 4-hour chart shows that the pair remains below a   bearish 20 SMA, which currently provides dynamic resistance at around 1.1580. The Momentum indicator consolidates within negative levels, although the RSI turned marginally higher from near oversold readings. Buying interest is still side-lined, as the pair would need to at least re-take the 1.1640 price zone to become more attractive for bulls.

Support levels: 1.1520 1.1475 1.1440

Resistance levels: 1.1580 1.1640 1.1685

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.