Eurusd sees slight rise amid marginal improvements in US manufacturing and Eurozone sentiment

EURUSD Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.11%	11.9 Pips
Week to-date	0.1%	10.7 Pips
November	0.1%	11.2 Pips

Upcoming key events (London Time)

Tue 12:00 AM USD Presidential Election

What happened lately

In the United States, there has been a slight improvement in the manufacturing sector. The latest figures from the Census Bureau depict that new orders for manufactured goods saw an uptick, albeit remaining negative. In September, the new orders recorded a change of -0.5%, an improvement from a revised -0.8% in August. This suggests a marginal stabilization in manufacturing activity, although the sector is still contracting. Such data could signal to policymakers and investors that while there are signs of marginal recovery, caution is warranted as the sector remains sensitive to broader economic conditions.

In the Eurozone, sentiment among investors and analysts showed a slight positive shift in November. According to data from sentix GmbH, the Economic Index for the Eurozone improved modestly, rising to -12.8 points from -13.8 in October. This enhancement indicates a growing, albeit cautious, optimism about the economic prospects of the region. Such sentiment improvements might reflect expectations of resilience amidst various challenges, although the numbers remain negative, underscoring the ongoing uncertainties in the regional economy.

The EURUSD currency pair saw a minimal appreciation on Monday, rising by 0.11% to 1.08980. The improvement in both U.S. manufacturing orders and Eurozone economic sentiment, although slight, tends to favor the Euro marginally. A less negative manufacturing data in the U.S. might suggest a slowly stabilizing economy, whereas the improved sentix Economic Index indicates greater but cautious optimism in the Eurozone. Going forward, the upcoming U.S. Presidential Election is labeled as a high-impact event, which can potentially introduce significant volatility to the EURUSD pair, depending on the market’s perception of the election outcomes and their likely impact on economic policy. Therefore, the currency market could witness fluctuations as market participants anticipate changes in the political and economic environment.

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What can we expect from EURUSD today?

EURUSD on Monday rose 0.11% to 1.08980. Price is above 9-Day EMA while Stochastic is rising in overbought zone.

Updated daily direction for EURUSD looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 1.09122 with break above could target R2 at 1.09263 or figure level area. While towards the downside, we are looking at daily low of 1.08695 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.09050 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is mixed as compared to the prior week.

Key levels to watch out:

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