{"id":134784,"date":"2018-10-02T08:01:50","date_gmt":"2018-10-02T12:01:50","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=134784"},"modified":"2018-10-02T07:11:40","modified_gmt":"2018-10-02T11:11:40","slug":"eurusd-euro-back-on-the-decline","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/10\/eurusd-euro-back-on-the-decline\/","title":{"rendered":"EURUSD: euro back on the decline"},"content":{"rendered":"<div id=\"inves-2687488510\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">October 2, 2018<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong><em>Previous:<\/em><\/strong><\/p>\n<p>On Monday the 1<sup>st<\/sup>\u00a0of October, trading on the euro closed down. The rate rose to 1.1625 during the European session before dropping to 1.1564 in the US. I found the market\u2019s behaviour confusing yesterday given that the euro dropped against the dollar on the back of positive news concerning Brexit, a rise in oil prices, and a drop in US10Y bond yields.<\/p>\n<p>Brent oil rose to 85.30 USD per barrel, which provided support to commodity currencies. The USDCAD currency pair dropped to 1.2782. The loonie rose as the euro took a dive. Moreover, this all happened against the backdrop of a decline in US10Y bond yields.<\/p>\n<p>Aside from oil, the loonie was also propped up by Canada agreeing to a new three-way free trade deal called the USMCA (US-Mexico-Canada Agreement).<\/p>\n<p>September\u2019s ISM manufacturing PMI disappointed markets. The report came out lower than the previous value, and lower than the forecasted value. The release of this PMI data stopped the US dollar\u2019s rise in its tracks, but now it\u2019s back on the attack.<\/p>\n<p><strong><em>Day\u2019s news (GMT+3):<\/em><\/strong><\/p><div id=\"inves-2671839714\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<ul class=\"list list_type_disc\">\n<li>11:30 UK: PMI construction (Sep).<\/li>\n<li>12:00 Eurozone: PPI (Aug).<\/li>\n<li>19:45 US: Fed\u2019s Powell speech.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/cms\/images\/583_5bb314097f634.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart.<\/p>\n<p><strong><em>Current situation:<\/em><\/strong><\/p>\n<p>During Monday\u2019s European session, the euro rose to 1.1625, missing out on my target of 1.1650. It then dropped from the LB balance line to 1.1563. I had predicted a recovery for the euro to 1.1618, but the bears scuppered this, pushing the rate down to 1.1547.<\/p>\n<p>The pair has exited the channel. I\u2019m not considering a decline today given that the hourly cycles and patterns show the euro strengthening. Add to this my confusion over the euro\u2019s decline yesterday and I can say that for me, the market situation is ambiguous.<\/p>\n<p>If we take a look at the daily timeframe, the 1.1525 low from the 10<sup>th<\/sup>\u00a0of September catches the eye, as this has the potential to stop the euro\u2019s decline against the greenback. If the bears break through the 1.1525 \u2013 1.1535 zone, then we\u2019ll see a further decline to 1.1470.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: euro back on the decline<\/a>&#8220;<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Monday the 1st\u00a0of October, trading on the euro closed down. The rate rose to 1.1625 during the European session before dropping to 1.1564 in the US. I found the market\u2019s behaviour confusing yesterday given that the euro dropped against the dollar on the back of positive news concerning Brexit, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-134784","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/134784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=134784"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/134784\/revisions"}],"predecessor-version":[{"id":134785,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/134784\/revisions\/134785"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=134784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=134784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=134784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}