Eurusd rises due to improved economic indicators in us and euro area

EURUSD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.29%	32.1 Pips
Week to-date	1.13%	121.6 Pips
November	0.29%	32.1 Pips

Upcoming key events (London Time)

Thu 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)

What happened lately

In the United States, new orders for manufactured goods saw a slight improvement in September. According to data released by the Census Bureau, the figure advanced to -0.5% from a revised -0.8% in August. This indicates a marginal increase in demand for manufactured goods, suggesting a potential stabilization in the manufacturing sector, which had been facing earlier contraction. The improvement, albeit moderate, could signal a resumption in production activities that may bolster the economic outlook, provided that the momentum continues forward.

In the Euro Area, the sentix Economic Index showed signs of improvement in November. Reports from sentix GmbH reveal that the index rose to -12.8 points from -13.8 points in October. This marks a positive shift in economic sentiment within the Eurozone, indicating that investor confidence is starting to recover, albeit still within negative territory. The improving sentiment suggests that economic conditions, while challenging, are becoming less severe, as investors may be reacting to declining economic uncertainties or anticipating favorable policy measures from the European Central Bank or national governments within the Eurozone.

The recent data releases can influence the EURUSD currency pair. On Tuesday, the EURUSD rose by 0.29% to 1.09182. The slight improvement in manufacturing orders in the U.S. coupled with the better-than-expected sentiment index in the Euro Area provided mixed cues. While both economies showed marginal improvements, the anticipation of upcoming events, such as the USD Federal Interest Rate Decision, can exert additional influence on the pair. If the Federal Reserve opts to adjust interest rates, it could significantly impact the USD, thereby affecting the EURUSD rate. Traders might remain cautious ahead of the decision, with potential volatility expected. A higher interest rate could strengthen the USD, leading to a potential decline in EURUSD, whereas a rate hold or a more dovish outlook might support further EURUSD gains.

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What can we expect from EURUSD today?

EURUSD on Tuesday rose 0.29% to 1.09182. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate upside resistance level is R1 at 1.09458 with break above could target R2 at 1.09733 or figure level area. While towards the downside, we are looking at daily low of 1.08721 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.09365 may suggest continuation after recent positive movement.

For the week to-date, take note that EURUSD is bullish as the pair continued to trade higher and is up by 1.13% over the past few days.

Key levels to watch out:

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