It’s a risk-on kind of week (so far) and now EUR/USD is knocking on key resistance levels!

Are we looking at an upside breakout in the making?

Before moving on, ICYMI, yesterday’s watchlist checked out an area of interest from USD/CHF’s chart. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

ISM manufacturing index shows expansion slowed from 52.8 to 50.9 in Sept

FOMC’s Williams says Fed policy not restrictive, still has ways to go

ANZ Australian job ads down by 0.5% in Sept

Australia building approvals surge 28.1% in Aug vs. 5% expected

Tokyo’s core CPI accelerated from 2.6% to 2.8% from a year ago in Sept

Asian shares track Wall Street higher

RBA surprisingly slows rate hike from 50bps to 25bps in Oct

RBA still expects more rate hikes over the period ahead, size and timing to depend on data

Bond yields retreat on bets of slow tightening

Stocks, sterling rally after UK’s tax climbdown injects some confidence

Oil prices edge up ahead of OPEC+ meeting to discuss supply cuts

Upcoming Potential Catalysts on the Forex Economic Calendar:

US JOLTS job openings at 10:00 am GMT
US factory orders at 10:00 am GMT
AU retail sales at 8:30 pm GMT
RBNZ’s interest rate decision at 9:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: EUR/USD

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart

Start-of-month (and quarter) buying has pushed EUR/USD higher so far this week.

It also helped that U.S. Treasury yields have edged lower from their notable highs while rate hike expectations for the European Central Bank (ECB) have supported demand for EUR/USD.

EUR/USD has bounced from the .9550 handle and this week’s momentum helped the pair hit its current levels near parity.

Can EUR bulls maintain their momentum though?

As you can see, EUR/USD is now flirting with a July and August’s support zone that’s also not far from the 4-hour chart’s 100 and 200 SMAs.

Look out for more EUR buying that could push EUR/USD closer to the 61.8% Fibonacci retracement and trend line resistance on the chart.

A rejection at the months-long trend line resistance could drag EUR/USD back to its September lows.

On the other hand, a clear break above the SMAs and the trend line resistance just might push EUR/USD above parity.