Market Analysis

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September 27, 2019 10:56 am

EUR/USD Daily Analysis: September 27, 2019

The US dollar index that measures the value of the greenback against a basket of major currencies is now about to break a 28-month high. Meanwhile, the euro major pair has broken to an equivalent low that seems to lead to further losses. 

So far, only the New Zealand dollar has taken the lead against the greenback while the British pound has been the weakest for this week as it went down by 1.5% against the dollar. 

Data releases from Europe similar to inflation came in weaker than anticipated earlier today. The German import price dropped by 0.6% in August compared to the previous 0.3%. Also, the CPI in France has declined by 0.3% in the present month. As for Consumer spending, it was flat and did not meet the expectations of analysts. 

Economic data to be released later this day will include the US durable goods orders and personal spending figure. The data will typically not induce a volatile reaction in the trading rate. 

The euro major pair has finally broken lower after two unsuccessful attempts to break less than 1.0930 at the beginning of the month. Its momentum to descend continues, although I think it is important to consider a few failed attempts for this year. 

The next support level will likely be at 1.0862 and then to 1.0833. We can also expect the volatility to spike during the trading session, which is often the case at the end of the month and the end of the quarter. 

The former support at 1.0930 now acts as a resistance and in case the pair rises over it, the resistance level will further move at 1.0966.

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