‘EUR/USD’ lost way after Italian crisis
On Monday, when the news breakout of the Italian crisis the currency pair ‘EUR/USD’ drop to a low level and has touched the level of negative ground. While the greenback commonly known as USD has lost the momentum, but later gained the higher level, the key reason for this was a market mood dropped low level when the crisis break out. The currency pair has reached to a low level of 1.1473 level. The EUR/USD has actually gained a recovery in American time zone.
EUR/USD loses the direction after the crisis:
There is a higher risk-off sentiments that is about to prevail at the beginning of the week, it continues to have extra support and résistance level. In the Asian time zone, there is a huge amount of support level and should have safest Yen, while there is a kind of higher support level and should have a market of re-emergence around Italy.
In the American time zone, we expect the greenback will have higher gain retrenchment and pullback till FRIDAY of this week. On the other hand, there is a mixed reaction of September Payroll which was declared week back. The American payroll declaration has subsequently put the greenback in ‘bullish’ mode, the September payroll declaration by US government has garnered a mixed reaction in the US Dollar (USD) Index has put a test to the figure.
In the Euro zone, ECB has shown a major causes of worry as 50% of the economies are not even performing well. In the earlier times, there is a huge increase in the overall inflation while the respective central banks have pointed out the price stability issue for some time.
As per the sentiments, EU’s index level have shown a below expectation level for this month that forecasted the level of 11.3 as compared to 11.7 from the month of October while for the earlier this trend was quite positive.
EUR/USD levels to watch
At the moment, the EUR/USD pair seems to be losing the grounds which has a downside of 0.51% which has a level of 1.153 which has shown a resistance level (50% rise in FIBO level) that has finally moved on to a level and temperament of 1.1299.
While speaking for the SMA, the currency pair seems to be trading at level of 1.1551 (50% FIBO) while it finally shows a downtrend in 21-Day SMA
Seven Star FX Analyst View:
- European Time Zone
EUR/USD
| Wednesday | Bearish – ‘EUR’ |
| Thursday | Bearish – ‘EUR’ |
| Friday | Mid- level sentiment |
- American time zone:
EUR/USD
| Wednesday | Bullish – ‘USD’ |
| Thursday | Bullish – ‘USD’ |
| Friday | Mid- level sentiment |
See The Seven Star FX Best currency pair to trade in American time zone.