EUR/USD Slumps to New Multi-Decade Lows After US Rate Hike

The EUR/USD currency pair has plummeted to a new multi-decade low of about 0.9680 after the latest round of US data. The currency pair continues to trade within a descending channel formation in the 60-min chart.

The pair has now plunged to trade several levels below the 100-hour moving average line. As a result, the currency pair has descended into the oversold conditions in the 14-hour RSI.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading at the back of a relatively busy period in both markets. On Friday, the preliminary EU S&P Global Composite PMI for September matched the expectation of 48.2. However, the manufacturing PMI missed the forecast of 48.7 with a reading of 48.5, while the Services PMI also came short of 49 with 48.9. Elsewhere, Germany’s preliminary S&P Global/BME Manufacturing PMI came in line with the expectation of 48.3, whereas both the services PMI and the composite PMI missed 47.2 and 46, respectively with 45.4 and 45.9.

In the US, the preliminary S&P Global Manufacturing PMI for September outperformed the expectation of 51.1 with 51.8. Both the S&P Global Services PMI and the Composite PMI also outshone the forecasts of 44.7 and 45 49.2 and 49.3. On Wednesday, the Federal Reserve raised the base interest rate by 75 basis points to 3.25% up from 2.5%, in line with expectations. The initial jobless claims for the week ending September 16 outperformed the expected claim count of 218k with a tally of 213k.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current run of declines toward 0.9643 or lower to 0.9600. On the other hand, the bulls will be targeting potential rebounds at about 0.9723 or higher at 0.9764.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair seems to be trading within a gently descending channel formation. This indicates a slight long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about 0.9529 or lower at about 0.9339. On the other hand, the bulls will look to pounce on rebounds at about 0.9843 or higher at 1.0023.

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