The EUR/USD is trading below 1.1500, consolidating the falls. The US Dollar is propelled higher by three factors related to each other. The technical picture is bearish for the pair, with the “death cross” looming. The EUR/USD is trading below 1.1500, the lowest levels in six weeks. The pair fell sharply on Wednesday on US Dollar strength stemming from three factors: 1) Excellent data The ADP Non-Farm Payrolls report came out at 230,000 jobs gained in September, far above expectations and an upbeat figure in its own right. The publication serves as a hint towards the official NFP on Friday and raises expectations. The ISM Non-Manufacturing PMI also beat early projections with a score of 61.6, the best level ever. The robust number implies a fast clip fo growth in the US services sector and also boosts expectations for Friday’s NFP. 2) US bond yields break higher The 10-year Treasury bond yield broke above the previous highs of 3.13% and hit a new peak at 3.23%. The sharpy movement is atypical. Yields of earlier maturities also moved higher. The higher levels make the US Dollar more attractive. This was mostly felt in the USD/JPY but the EUR/USD was also pressured lower by the move. 3) Powell’s power play Fed Chair Jerome Powell made his fourth public appearance in a week but this time was slightly different. The central banker explicitly said that monetary policy of the Federal Reserve may become tight, at least temporarily. Some Fed officials want to stop when the rate reaches neutral but the man at the top opened the door to having interest rates above the level of inflation. Some speculate the Fed may even raise rates five times in 2019. Elsewhere Tensions around Italy are not as high as they used to be. The Italian government sticks to its plans to have a budget deficit of 2.4% in 2019, breaching EU rules. However, the coalition partners of the populist government agreed on lower deficits for 2020 and 2021, aiming to appease the European Commission. The Italian government is waiting for a verdict on its budget later this month. Data in the euro-zone was somewhat disappointing with a drop of 0.2% in August. The economic calendar today is quite light, with only US Factory Orders worth a mention. Tension is mounting towards the all-important US Non-Farm Payrolls on Friday. EUR/USD Technical Analysis The EUR/USD is trading well below the 50 and 200 Simple Moving Averages on the four-hour chart. The SMA50 is about to cross the SMA200, in what is known as the “death cross”. On the other hand, the Relative Strength Index (RSI) is almost below 30, pointing to oversold conditions. Support awaits at 1.1460, the fresh low and a veteran line from 2015. Further down, 1.1395 was a swing low in August and 1.1365 was the initial level the pair dropped to in its collapse in the summer. 1.1300 is the 2018 low. Looking up, 1.1530 was a triple-bottom and now switches to resistance. 1.1565 supported the pair in September and 1.1595 was a swing high just before the recent drop. 1.1625 and 1.1680 are next up. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Summary of recent comments from Fed officials FX Street 3 years The EUR/USD is trading below 1.1500, consolidating the falls. The US Dollar is propelled higher by three factors related to each other. The technical picture is bearish for the pair, with the "death cross" looming. The EUR/USD is trading below 1.1500, the lowest levels in six weeks. The pair fell sharply on Wednesday on US Dollar strength stemming from three factors: 1) Excellent data The ADP Non-Farm Payrolls report came out at 230,000 jobs gained in September, far above expectations and an upbeat figure in its own right. The publication serves as a hint towards the official NFP on Friday… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.