The pair consolidates and is likely to remain in such pattern as investors await the always-important Jobs Report from the United States, the outcome of which could decide the next leg of the move.
This comes in the aftermath of the Fed's decision to begin its QE tapering within the month, during which, Mr. Powell said that additions of 550K-600K payrolls would be considered good progress .
The last two NFP prints were disappointing and the US economy is forecasted to have added 450K jobs in October, with the release due at 12:30 GMT.
On the technical side, EUR/USD is cautious after narrowly avoiding fresh 2021 lows (currently at 1.1523) during yesterday's decline, but such risk remains high. This would open the door for a test of 1.1500-1.1492, although moving and staying below this level may be prove difficult at this stage.
Despite the downward tilt, the Euro had managed to rebound right after its previous visit towards the 2021 lows last week. As such, an effort to surpass its EMA100 and move towards 1.1600 could be in play, but a catalyst would be probably needed for fresh November highs (1.1617), while the upside seems well protected from there on.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
Retrieved 05 Nov 2021 https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20211103.pdf