Greenback Rallies, EUR/USD Plunges
The first three trading days of November have been strong ones for the Greenback. Rallies vs the Euro, GBP, and Swiss franc have highlighted the action. Moving forward, it appears as though last week’s FED rate-cut mania has resided and a sense of calm is spreading throughout the forex.
Earlier today, a group of mixed economic metrics hit the newswires. The result was a significant spike in participation that largely favored the Greenback. Although the Markit Services PMI and IBD/TIPP Economic Optimism (MoM, Nov.) fell, a strong ISM Non-Manufacturing PMI (Oct.) has headlined the session. The figure came in at 54.7, above expectations (53.5) and the previous release (52.6).
All in all, the ISM Non-Manufacturing PMI has been well received by forex traders. The Greenback continues to move higher vs the majors as midweek trade approaches.
The Greenback Continues To Rally VS The EUR
The past 48 hours have been big ones for the EUR/USD. Rates have plunged by more than 100 pips from highs near 1.1175. At this point, it looks like the bumrush south is on and 1.1050 is the next big-round-number up for scrutiny.
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Here are two levels worth noting as the trading day progresses:
- Resistance(1): 38% Fibonacci Retracement, 1.1105
- Support(1): Bollinger MP, 1.1072
Overview: In a Live Market Update from Monday, I broke down a long trading opportunity in the EUR/USD. The trade didn’t perform all too well, posting a moderate 13 pip gain before succumbing to the bearish pressure. At press time (about 1:45 PM EST), sellers are still dominating the action. In the event that the daily Bollinger MP is taken out at 1.1072, be on the lookout for a swift test of the 1.1025-50 area to develop later on in the session.
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