The EUR/USD pair has lost the 1.1700 figure and nears the daily low of 1.1691 as the dollar continues to advance on the heels of risk aversion, Valeria Bednarik, Chief Analyst at FXStreet, reports.
Key quotes
“The main market concerns are pandemic-related, amid the large increase in European coronavirus cases and the lack of a fiscal stimulus program in the US. Stocks are firmly lower worldwide, while government debt yields have also come under pressure.”
“The US has just release Initial Jobless Claims for the week ended October 9, which unexpectedly rose to 898K, much worse than expected. The country also released the October NY Empire State Manufacturing Index which came in at 10.5, also missing the market’s expectations. The Philadelphia Fed Manufacturing Survey for the same month improved from 15 to 32.3, beating expectations. The discouraging news fuel equities’ slump and provide support to the greenback.”
“The 4-hour chart shows that the EUR/USD pair keeps sliding below all of its moving averages, as the 20 SMA gains bearish traction, reflecting an increased selling interest. Technical indicators remain well into negative levels, although partially losing their bearish momentum. The risk is anyway skewed to the downside, with the immediate support level now at 1.1680.”
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