EURUSD broke below the 1.06 mark
On Tuesday, as the US dollar climbed and Eurozone economic growth slowed down, EURUSD decreased. It broke below the 1.06 mark and ended down 0.38%.
Eurozone economic growth slowed down
On Tuesday, Eurozone CPI, y/y (October) was 2.9%, which marked the lowest level since July 2021, according to the data from the Eurostat on Tuesday.
In addition, Eurozone GDP, y/y (Quarter 3) was 0.1% Vs. 0.2% (forecast). The decline in German’s economic growth mainly put pressure on Eurozone economic growth.
US economic data was strong
US Labor Cost Index, q/q (Quarter 3) increased from 1% to 1.1% Vs. 1% (forecast), according to the data from the US Department of Labor. US labor cost climbed beyond expectations in the third quarter, reinforcing the expectation that the Fed will keep the interest rate at a higher level for a longer time.
The bearish market trend prevailed in the short term
the Chart of the Day
On the chart of the day, EURUSD rebounded and then declined. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing EURUSD will fall further. Investors should focus on whether EURUSD will break through the resistance at 1.062. It will fall further if it rebounds but is capped at 1.062.
On the 4-hour chart, EURUSD was prone to fluctuation and fell. The market trend is bearish in the short term. In terms of technical indicators, MACD went downwards after death cross occurred above the zero axis, showing the market trend is bearish. EURUSD will decline further with potential support at 1.045 if it breaks below 1.052.
Key resistance: 1.062, 1.069
Key support: 1.052, 1.045
Generally speaking, as US economic data was strong and Eurozone economic growth slowed down, EURUSD is more likely to fall further in the short term. Investors should focus on the interest rate decision by the Fed during the day.