Euro Analysis 04.10.2021

The single currency, the euro, fluctuated in a narrow range tilted to the upside during the Asian session, to witness its rebound to the third session from its lowest since July 23, 2020 against the US dollar on the cusp of developments and economic data expected today, Monday, by the economies of the euro area and the US economy, the largest economy in the world and amid Looking forward to the Eurogroup meetings in Brussels.

At exactly 06:59 am GMT, the euro pair rose against the US dollar by 0.04% to 1.1598 levels, compared to the opening levels at 1.1593, after the pair achieved its highest level during the trading session at 1.1614, while it achieved its lowest level at 1.1588.

The markets are looking forward to Spain, the fourth largest economy in the eurozone, the release of the unemployment change index for the month of September, before we witness the economies of the region as a whole. Eurogroup meetings, which are attended by the finance ministers of member states, the Commissioner for Economic and Monetary Affairs and the Governor of the European Central Bank.

On the other hand, investors are currently waiting for the US economy to release a reading of factory orders, which may reflect an acceleration of growth to 1.1% compared to 0.4% last July. Other than that, the markets are looking forward to tomorrow's speech by the Federal Reserve Deputy Governor and Federal Committee member Randall Quarles about the transformation of (Libor) Flat Rate Interbank Lending Interest at the Las Vegas Structured Finance Association conference.

Technical Analysis

The euro against the dollar pair continues to fluctuate around the 1.1605 level and maintains its stability below it so far, accompanied by the emergence of clear negative signs through the stochastic indicator, which motivates the price to resume the expected bearish trend on the intraday and short term, waiting to head towards 1.1500, which represents our next main target.

Therefore, the negative scenario will remain valid for the upcoming period, noting that breaching 1.1605 will lead the price to start recovery attempts targeting the 1.1700 areas initially.

The expected trading range for today is between 1.1490 support and 1.1635 resistance

The forecast general trend for today: Bearish