EURUSD Retreat From 3-Week Highs, Stalls at 50% Fib

EURUSD gives up 0.45% at 1.1020, amid increased tensions in the Middle East as US accuses Iran for the drone attacks in Saudi Arabia. United States NY Empire State Manufacturing Index came in at 2, below forecasts of 4 in September. Last week the ECB cut the Deposit Rates by 10 bp to -0.50% and unveiled another round of debt purchases. EURUSD retreats today from three-week highs. The pair rejected at the upper bound of the descending channel and a move to lower levels now looks possible. The bears are in control as EURUSD trades below all major moving averages.

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EURUSD trapped in the descending channel since June. On the upside, immediate resistance stands at 1.1086 today’s high, a break above can lead prices up to 1.1109 the upper bound of the descending channel, and then at 1.1125 the 50-day moving average. As of writing the pair stalled at the 50% Fibonacci retracement, on the downside important support now stands at 1.1014 daily low, a break below will encourage more bears to join the action and drive the price down to 1.10 before an attempt to 1.0925 YTD lows.Download our latest quarterly market outlook for our longer-term trade ideas.

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