Bears trading on EURUSD for the time being defended level 1.0950, showing once again how well the level of July lows acts as resistance. Bearish trend of this popular pairs supported by better data from overseas. What we were focused on Today?
After described in a Morning Review of Market data from Australia investors were waiting for the afternoon and then planned publications from America. The first of these was the September report on the trade balance in the US. The increase in these slightly more than $4.5 billion, supported the dollar – larger increases were noticeable even in pair with the yen.
Fifteen minutes before 16:00 we followed the publication of the estimated October PMI for the services in the United States. The value of the indicator noticeably differ from expectations at 52.3, taking the final value of 54.8 points. Despite the fact that today’s publication was only estimation of real value (after all, the month is not over yet), it is more optimistic and the current calculation was warmly received by investors. Shortly after the publication of the PMI, was published a report on the sale of real estate in the primary market in the United States. Increase of 3.1% (which is the result of a major revision of the previous reading of 608 thousand to a level of 575,000) also had a positive impact on the valuation of the USD.
The last report, especially important for those investing in commodities, was the publication of the US EIA for changes in stocks of crude oil. The decrease in these just over 550,000 barrels against a forecast of 1.699 million barrels caused that oil WTI found itself (at the moment) above the level of 50 USD.
During the day Rueters reported on unofficial reports from the environment of the European Central Bank. According to the agency the ECB intends to extend the ongoing asset purchase program (QE) and loosen the conditions of the program in such a way not to run out of assets to be bought by the central bank of the euro zone. So far, European QE should last until March next year. EUR responded to reports by weakness:
Currently, we are left to wait only for data from New Zealand (trade balance). Forecasts point to a potential decline in the trade deficit, which should translate into increases in NZD. Currently, the currency in pair with the US dollar is declining and testing the lower limit of the upward channel on the hourly chart. The next support is around 0.7140.
