EURUSD was capped and declined
On Tuesday, as the USD climbed, and Eurozone economy was sluggish, EURUSD declined. It ended down 0.73%.
US PMI was better than expected in October
US Markit Manufacturing PMI increased from 49.8 to 50 Vs. 49.5 (forecast); US Markit Services PMI (October) climbed from 50.1 to 50.9 Vs. 49.8 (forecast), according to the data from Markit.
Eurozone economic data was sluggish
Eurozone Manufacturing PMI (October) fell from 43.4 to 43 Vs. 43.7 (forecast); Eurozone Services PMI (October) declined from 48.7 to 47.8 Vs. 48.7 (forecast), according to the data from Markit. There is a risk that Eurozone economy will be weaker, raising the expectation that the ECB will suspend increasing the interest rate, experts at the investment bank said.
The bearish market trend prevailed in the short term
the Chart of the Day
On the chart of the day, EURUSD decreased sharply yesterday. The market trend is bearish in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred at a high level, showing EURUSD will fall further. Investors should focus on whether EURUSD will break through the resistance at 1.064. It will decline further if it rebounds but is capped at 1.064.
On the 4-hour chart, EURUSD decreased sharply. The market trend is bearish in the short term. In terms of technical indicators, MACD went downwards after death cross occurred at a high level, showing the market trend is bearish. EURUSD will fall further to 1.052 if it breaks below the support at 1.056.
Key resistance: 1.064, 1.069
Key support: 1.056, 1.052
Generally speaking, as US economic data was strong and Eurozone economy was sluggish, there is a risk that EURUSD will fall further. Investors should focus on the speech made by the ECB Governor during the day.