- Summary:
- The euro extended its losing streak to the dollar to a fourth consecutive day. Top-tier US data are due today and could dictate the direction on EURUSD.
The euro scored its fourth consecutive losing day to the dollar on Monday. EURUSD opened the week at 1.1015 and was trading higher during the Asian session tapping an intraday high of 1.1031. However, the currency pair failed to find enough bids to sustain a rally. It closed at 1.1012.
In yesterday’s forex news, only the German Ifo Business Climate report was scheduled for the euro. It printed slightly higher at 95.0 versus the 94.9 forecast. While this seems like good news on the surface because the higher reading suggests that business conditions are improving, Ifo warned that Germany’s manufacturing sector is “stuck in a recession.”
It may not have also helped the euro that Federal Reserve Chairman Jerome Powell stuck to the script in his latest speech. He hinted that the central bank will not be easing further anytime soon. According to him, monetary policy remains appropriate.
Forex News Due Today
For today, only the third-tier German GfK Consumer Climate report is scheduled for the euro. At 7:00 am GMT, it is expected to show a slight improvement in consumer sentiment this November. The consensus is eyed at 9.7, up from October’s 9.6 reading.
This probably means that EURUSD will take its cue from forex news coming from the US. The most important report for the pair today is going to be Conference Board’s Consumer Confidence report for November at 3:00 pm GMT. It is expected to reflect confidence in spending among consumers in reaction to the Fed’s ultra-low interest rates. The forecast is at 126.9.
Along with it, the Richmond Manufacturing Index is seen to show that manufacturing activity continue to grow in November, albeit at a slower pace. The forecast is lower at 6 than last month’s reading at 8.
Data for new home sales is also scheduled for release at the same time. It is expected to print at 708,000.
EURUSD Outlook
On the hourly chart, EURUSD looks like it’s finding a bit of support around 1.1015 where it also consolidated on November 12. If there are enough sellers in today’s trading, the next support level will be at 1.0989 where it bottomed on November 14. A break of that level could push EURUSD to its year-to-date lows at 1.0880.
On the other hand, if buyers dominate today, the nearest resistance level for the currency pair to test will be yesterday’s highs at 1.1031. A break of that could push EURUSD to its previous lows at 1.1054 for resistance.Download our latest quarterly market outlook for our longer-term trade ideas.