The following is an explanation of the daily analysis of EURUSD: October 7, 2021 from the GIC team. The Euro currency weakened against the US Dollar currency in market trading on Wednesday, October 6, 2021 yesterday. The weakening of the Euro occurred due to the strengthening of the US Dollar, in addition to the weakening of the Euro currency also occurred due to the release of negative European economic data. The economic data in question are German Factory Orders data and Retail Sales data.

For Germany data, Factory Orders were released at only -7.7%, far below the prediction of -2.3% while the previous month's period was released at 4.9%. The release of this data illustrates that economic conditions in the European Region are still weak and far from normal limits. In today's market trading in the Asian session, it is predicted that the movement of the Euro will still weaken because the US Dollar currency is still very solid at its highest level.

Especially after the release of the ADP Non-Farm Employment Change data released last night which was very good. ADP data was released at 568,000, far above the prediction of only 425,000 while the previous period was 340,000. Although this employment data was released well, the condition of the US Dollar had experienced a limited weakening. The reason for the weak US dollar is limited because it is pressured by the decline in the value of US bond yields with a tenor of 10 years.

The decline in the value of this bond yield has occurred for 3 times in a row, this makes market participants feel worried about the rising US inflation rate. Therefore, after the release of ADP data last night, the price of Gold jumped up and touched the level of US$1764.99/troy ounce. However, it is certain that the weakening of the US dollar currency is only temporary because if you look at the release of ADP data last night, it reflects that the US employment index is starting to recover, and further makes market participants believe that the US tapering plan can be carried out as planned in November.

In addition, the factors that cause the strengthening of the US Dollar currency are the discourse of stimulus cuts and the discourse of interest rate hikes that will be carried out if the US employment index has been on a solid upward trajectory. The plan will be carried out in 2022 – 2023. The focus of market participants for today is on the release of weekly unemployment data "Unemployment Claim" which is predicted to decrease to the level of 350,000 compared to 362,000 last week. referring to the prediction of this data, there is a high chance that the condition of the US Dollar currency will strengthen.

EURUSD Daily Technical Analysis

The following is a technical analysis of EURUSD containing EURUSD pivot points, support, and resistance data for October 07, 2021. It is predicted that the EURUSD trend will still be bearish/down on October 7, 2021.

Pivot Point

The pivot point of EURUSD on October 7, 2021 was 1.15615.

Support

The following are the support values of 1, 2, and 3 EURUSD on October 7, 2021.
  1. Support 1 = 1,15229
  2. Support 2 = 1,14901
  3. Support 3 = 1,14515

Resistance

The following are the resistance values of 1, 2, and 3 EURUSD on October 7, 2021.
  1. Resistance 1 = 1,15943
  2. Resistance 2 = 1,16329
  3. Resistance 3 = 1,16657
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