EUR/USD hits fresh highs but lacks momentum

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/USD stretched to fresh daily highs following the release of the latest string of US data, which showed US consumer income and spending grew below expectations last month, while PCE price index posted the largest drop since January.

    US personal spending rose 0.1% in September, below the 0.2% increase expected, while personal income climbed 0.1%in the same period, also below the 0.2% rise expected. This was the smallest increase since March 2015. The PCE price index, the Fed's prefered inflation measure, fell 0.1% in September, but rose 0.2% YoY.

    Separated data showed the employment-cost index rose a seasonally adjusted 0.6% in the third quarter, matching analysts forecast.

    EUR/USD posted a fresh daily high of 1.1035 but lacked strength and pulled back to pre-data levels. At time of writing, the pair is trading at 1.1009, still up 0.32% on the day.

    EUR/USD levels to watch

    In terms of technical levels, a decisive break above 1.1035 (Oct 30 high) would pave the way toward 1.1095 (Oct 28 high) and then 1.1110 (200-day SMA). On the other hand, supports might be found at 1.0896 (Oct 28 low), 1.0847 (Aug monthly low), 1.0808 (July monthly low) and then 1.0784 (Apr 24 low).
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