After a bullish start to the day yesterday, which gave rise to place at a summit at 1.0696 in the morning, EUR/USD posted strong gains. a severe correction, losing more than 100 pips to go back below the key threshold; of 1.06.
Remember that the statistics played a role. an important role in the correction of the Euro Dollar, with disappointing European PMI indices in the morning, while the same indices for the United States, published in the ;afternoon, exceeded expectations.
An increase in bets on a new rate hike by the Fed between now and next year. The end of the year also supported the dollar and favored its growth. the fall of EUR/USD. Indeed, if the market always predicts a probability 99% that the Fed does not raise its rates next month, the probability is of a rate hike in December has climbed à 25% at the time of writing this article, compared to 20% the day before.
The fact that the rate at 10 years US seems to have found a floor around 4.80% also benefited; to the greenback, just like the fall to the greenback; from the threshold of 5% affected; Monday morning had penalized US currency.
As for this Wednesday, the EUR/USD will be likely to be influenced; by the IFO German Business Climate Index 10 a.m., as well as by US building permits at 2 p.m., and by sales of new US homes, at; 4 p.m.
>> Find all the important statistics for EUR/USD and their results in real time in the Investing.com economic calendar.
However, we will have to wait until tomorrow for the most important events of the week, with the ECB meeting and preliminary third quarter US GDP data.
Also note that next week, the attention of the forex will turn to the Fed meeting.
À In this regard, know that Investing.com has invited Phillippe Lhermie to share his pre-Fed forecasts for different markets during an exceptional webinar on Monday October 30.
Technical thresholds à watch on EUR/USD
From a graphical point of view, the correction of EUR/USD on Tuesday does not yet call into question the bullish reversal that has begun; at the beginning of October.
On the other hand, a return below the psychological threshold of 1.05 would invalidate the reversal, and put the annual trough at 100% in sight. 1.0450. À rising, the 1.07 zone is the first important resistance, before 1.08, and the convergence of the 100 and 200 day MAs at 1.0815-1.0821.
EUR/USD corrects sharply in the face of statistics, ECB and US GDP in the crosshairs
