EUR/USD rebounds strongly ahead of a key indicator, and despite a “death cross” – After falling to 1.0485 on Wednesday, a few pips from its annual low, the EUR/USD pair has rebounded significantly since Thursday, having reached a high of 1.0580 this Friday morning.

The Euro Dollar indeed benefited from cheap purchases, following the test of the key threshold of 1.05, but also from a weakness in the Dollar, due to a GDP price index lower than expected, and 'a plunge in US housing sales promises.

In addition, the prospect of an imminent shutdown of the US government also penalizes the note, and removes the prospect of a rate hike by the Fed in November, since a shutdown would delay the publication of key economic data on which the Fed is supports in defining its monetary policy.

A few statements from central bankers have also participated in the rise of the EUR/USD since Thursday, notably Joachim Nagel, the president of the German Bundesbank, who declared that more rate hikes from the ECB could be necessary if the data goes in this direction.

As for Wednesday, the economic calendar will remain busy with events

Technical thresholds to watch on EUR/USD

From a graphical point of view, the rebound of the Euro Dollar is not yet sufficient to call into question the underlying downward trend, as seen on the daily chart below.

In addition, the currency pair yesterday validated a major bearish signal, called “death cross”, the 50-day moving average having crossed below the 200-day moving average, a context which could signal the strong return of sellers.

If EUR/USD manages to continue its rebound, 1.06, 1.0635 and 1.07 will be the first resistances to watch. If the decline dominates, Wednesday's low at 1.0485 and the psychological threshold of 1.05 form the first key support zone.

EUR/USD rebounds strongly ahead of a key indicator, and despite a “death cross”  

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