The dollar gathered momentum and dragged EUR/USD
to fresh lows sub-1.0950 despite the latest string of US data came in the soft
side.
US factory orders fell 1.0% in September against a decrease of 0.9%
expected, while prior months’ were revised down to -2.1% from -1.9%. Separated
data showed IBD/TIPP economic optimism index fell to 45.5 vs. 47.5 estimate
while on the flip side, US ISM NY index for October rose to 65.8. versus 44.5
the previous month.
The dollar shrugged off negative readings and
extended gains versus the shared currency, with EUR/USD hitting a low of 1.0935
before finding support. At time of writing, the pair is trading at 1.0950, still
0.58% down on the day.
EUR/USD levels to watch
In
terms of technical levels, immediate supports could be found at 1.0896 (Oct 28
low) and 1.0847 (Aug monthly low) ahead of 1.0800 (psychological level). On the
flip side, resistances line up at 1.1071 (Oct 30 high), 1.1095 (Oct 28 high) and
then 1.1107 (200-day SMA).
