EUR/USD: Deteriorated market mood leads to dollar gains

A dismal market mood has helped the greenback throughout the first half of the day. The EUR/USD pair retreated from the 1.1754 daily high to trade around the 1.1700 level ahead of US data and following the release of German macroeconomic figures, FXStreet’s Chief Analyst Valeria Bednarik reports. 

Key quotes

“Retail Sales in Germany were up by 3.1% in the month, better than anticipated, while the unemployment rate improved to 6.3% in September. The US released the ADP survey, which showed that the private sector added 749K new jobs in September, beating the market’s expectations of 650K. The country also published the final reading of Q2 GDP, which resulted in -31.4% slightly better than the previous estimate of -31.7%. US figures had a limited impact on the pair, although equities ticked higher with the news.”

“The 4-hour chart shows that the pair is losing its bearish strength, but also that selling interest is limited. A bullish 20 SMA now converges with the 23.6% retracement of the latest daily decline in the 1.1670 price zone, while a bearish 100 SMA reinforces the 61.8% retracement at 1.1770. Technical indicators eased from their highs, but remain well into positive levels.”