Trading | 1 month ago
EUR/USD registered a sharp selling on Thursday after the release of September’s German GfK consumer confidence survey. The survey reported the figures which are below one's expectations.
As a result, Euro fell by 0.83% to trade at 1.176 against the US dollar in this month. The selling interest in EUR is also supported by the investors with anticipation of the possibility of tapering of bond purchases by the Federal Open Market Committee. EUR/USD have been in a downtrend for a while and it still continues to struggle.
A slowdown in vaccination drive and continuation of social restrictions in major European cities have caused a general uncertainty regarding the performance of EUR, among the institutional investors as well as high net worth traders. The rise in daily cases of highly contagious delta variant of the coronavirus in European nations would invite more restrictions, which will impact the economic activities.
However, the US dollar strengthened against all major currencies in this month on preliminary GDP data and US durable goods orders data report. The report posted better than expected results and once again renewed the interest of investors in the world's largest economy.
The near-term technical outlook for EUR/USD is bearish as it is trending downwards from last three months. Therefore, one must look for selling opportunities in EUR/USD near 1.176 price level.
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