EURUSD: Halts Decline But Still Vulnerable To The Downside!
Although the EURUSD failed to close below 1.1478 for several days, followed by a rejection from 1.1478 levels with a bullish divergence on the 4-hour timeframe, bear threats are not over yet.
Immediate support is seen at the 1.1478 levels, stability above this level will keep pushing on the 1.1530 levels, a halt could be seen, but if this fails to happen, the pair will see a recovery to the 1.1590 levels, further upside, resistance is seen around 1.1638 levels.
Alternatively, a sustained breakout below 1.1478 followed by a daily closing below that level will restore the downside momentum and aim the 1.1407 levels with a break below here opening the way to the 1.1350 levels, next support comes around 1.1290 levels.
Conclusion: Despite the pair sees recovery threats above 1.1478 levels but still vulnerable to the downside in the medium-term outlook.
Support : 1.1478, 1.1407, 1.1350, 1.1290
Resistance: 1.1530, 1.1590, 1.1668, 1.1756
1- U.S PPI
The U.S will report on Producer Price Index for Sep today at 12:30 GMT. The indicator is expected to rise 0.2%, from -0.1% in the previous month.
EURUSD: Negative news from the US may bring a buying opportunity
Any reading below 0.2% is likely to challenge/break above1.1530 levels.
2- Fed speakers
Speech from Atlanta Fed boss Raphael Bostic will be in focus late tonight at 22:00 GMT. The Fed raised interest rates late last month, raising its third interest rate this year, and is expected to follow another increase before the end of December, bringing the federal funds rate to 2.25-2.50%. Any comments on interest rates will affect the market.