**EUR/USD Consolidates Losses Below 1.1500 Amid Risk Aversion and US Dollar Strength**
EUR/USD continued to consolidate its losses below the 1.1500 mark in early European trading on Wednesday, hovering around 1.1488 at the time of writing. The pair faces ongoing selling as a wave of risk aversion—triggered by a sharp sell-off in global equities—boosts demand for the safe-haven US Dollar. This comes as traders scale back expectations for Federal Reserve (Fed) interest rate cuts in December, particularly in light of diverging views among Fed policymakers.
**Key Economic Indicators in Focus**
European markets will turn their attention to the final release of the HCOB Services Purchasing Managers’ Index (PMI) figures for Germany and the wider Eurozone. Consensus expectations are for these numbers to confirm a significant acceleration in economic activity for October. Slightly later in the session, the Eurozone’s Producer Price Index (PPI) is anticipated to highlight ongoing deflationary pressures within the bloc.
Across the Atlantic, the US government shutdown continues into its fifth week, setting up the potential to be the longest on record. Against this backdrop, today’s ADP Employment report and the ISM Services PMI gain increased importance, with both releases expected to show modest rebounds after underwhelming data in September.
**Market Movers: Risk Aversion Supports the US Dollar**
The US Dollar remains in demand as investors seek safety, particularly with equities under pressure globally. Markets are closely watching the Fed’s next steps, given recent hawkish statements from Chairman Jerome Powell and contrasting opinions among other policymakers.
In Germany, Wednesday’s data showed Factory Orders rose 1.1% in September, beating expectations and rebounding from a 0.4% contraction in August. However, on a year-on-year basis, orders were still 4.3% lower compared to the previous month’s 2.1% increase.
Later today, the German HCOB Services PMI is expected to confirm its second consecutive month of growth, reaching 54.5 in October—the sector’s strongest showing in over a year, up from 51.5 in September. Similarly, the Eurozone HCOB Services PMI is forecasted to improve to 52.6 in October from a preliminary reading of 51.3.
In the US, due to a lack of official employment data, the ADP Employment Change report is in focus. Expectations are for a net increase of 25,000 jobs in October, following a 32,000 decline in September—well below the average of 150,000 jobs created monthly between 2010 and 2025. The ISM Services PMI is also anticipated today, with consensus pointing to a fractional rebound to 50.8 in October from 50.0 in September.
**Technical Analysis: EUR/USD Remains Vulnerable; Bears Eye 1.1440 Support**
EUR/USD is attempting to recover from three-month lows but continues to find sellers on any move higher after a nearly 1.5% decline over the last five trading days. Technical indicators remain deeply negative. The 4-hour Relative Strength Index (RSI) is approaching oversold territory, while the Moving Average Convergence Divergence (MACD) signals strong downward pressure, suggesting some potential for near-term consolidation.
Despite this, the immediate bias remains bearish. Tuesday’s low around the 1.1475 area is within close reach. The measured target of the broken triangle pattern—aligning with the 261.8% Fibonacci retracement of October’s rally—is near 1.1440. Below that, August’s low at around 1.1390 offers further support.
To shift momentum to the upside, EUR/USD would need to climb back above the 1.1500 zone. This would open the door to Wednesday’s high at 1.1530 and previous support turned resistance around 1.1545—levels seen on October 14 and 30. Further resistance lies at the October 22 and 23 lows near 1.1580.
**Key Levels to Watch**
– **Immediate Support:** 1.1475, 1.1440, 1.1390
– **Immediate Resistance:** 1.1500, 1.1530, 1.1545, 1.1580
Stay tuned for further updates as economic data releases and shifting market sentiment continue to drive volatility in the EUR/USD pair.
https://bitcoinethereumnews.com/finance/eur-usd-remains-depressed-ahead-of-the-eurozone-services-pmi-release/