EUR/USD sidelined near 50-day SMA, focus on stocks

 

  • EUR/USD trades largely unchanged on the day near its 50-day SMA. 
  • The pair risks breaching key support on continued risk aversion in stocks. 
  • The options market has flipped bearish with Monday’s drop. 

This news is brought you by TopAsiaFX

EUR / USD around his comatose simple average 50-day moving (ADM) of 1.1771, investors awaiting fresh clues from European stocks.

Monday, the pair has dropped more than 0.5% from 1.1840 to 1.1732, and a. The steam collected clearance sale in Europe after major indexes like the German DAX, CAC of France and the UK FTSE fell more than 3% in early trade, boosting haven demand for the US dollar.

Investors sold risk assets on Covid resurgence in Europe, the uncertainty surrounding the elections in the United States, and the publication of leaked documents claiming compliance failures by major banks.

If risk aversion deteriorates, the EUR / USD will probably find below the 1.1770 acceptance. This would confirm a head-and-shoulders pattern ventilation or bearish reversal on the daily chart.

EUR / USD Analysis Price: Teasing head and shoulders distribution
The forward contracts linked to the main European stock indices now indicate a flat start to trading Tuesday. The S & P 500 futures are also traded in negative flat.

EUR / USD options on the market, however, has turned bearish with put options or bearish drawing paris premium higher than stock options or bullish paris. In other words, investors expect the continued risk aversion and greater losses in the common currency.

Outside the stock market, the focus would be on the member of the European Central Bank Speech Panetta and euro area consumer confidence for September. The United States account existing home sales for August and Richmond Fed Manufacturing Index for September. In addition, is scheduled at 14:30 GMT Chairman of the Federal Reserve Jerome Powell testimony to Congress.

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