Forex Trading: EURUSD Technical Analysis – November 08, 2019

The Euro (EUR) inched lower on Friday against the US Dollar (USD), which resulted in a drop in EURUSD’s price taking it to less than 1,1100. The pair’s price decreased following the release of major economic news. Given the pair’s price movement over the past few days, the technical bias is expected to turn bullish because the pair’s price has been lower high in the recent downside move.

EUR/USD Technical Analysis

Currently, the pair is being traded around 1.1021, The support that acts as a backup function to keep the price from falling lower can be seen around 1.1099, the immediate 61.8 percent Fib level ahead of 1.1000, the psychological number and then the main horizontal support of 1.0878  shown in the chart.

EurusdOn the upside, a resistance that can stop it from going above this level can be seen at 1.1082, the 38.2% Fib level, sometimes later, the resistance of 1.1158, trendline resistance, and then at 1.1208, the graph above shows major horizontal resistance. The technical bias may remain bearish as long as 1.1082 stays unblemished, the strongest level of horizontal resistance.

USD Average Hourly Earnings

The U.S. Bureau of Labor Statistics reports the data on the U.S. Average Hourly Earnings indicates that this month’s rate increased by 0.2 percent relative to the last month’s 0 percent rate but below the economist’s 0.3 percent forecast

The Average Hourly Earning is an important indicator of labor cost inflation and labor market tightness. While setting interest rates, the Federal Reserve Board pays close attention. For the USD, however, a high reading is good, while a low reading is negative.

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, selling the EURUSD around current levels can be a good decision in the short to medium term.

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