Market Analysis: European Currencies Have Found a Short-term Bottom

<img src="https://images.unsplash.com/photo-1574641820089-d431bff40336?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDJ8fHBvdW5kfGVufDB8fHx8MTY5NjQ5NTMwMHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: European Currencies Have Found a Short-term Bottom" /><p>A weak employment report from ADR and a decline in the US services PMI contributed to the start of a corrective pullback in major currency pairs. Thus, the EUR/USD pair went above 1.0500, the GBP/USD pair is forming a bullish engulfing combination, and the USD/JPY pair fell below 149.00.</p><h3>GBP/USD</h3><p>The decline of the British currency was interrupted after the publication of data on the business activity index in the UK services sector for September. The indicator showed impressive growth: 49.3 against the forecast of 47.2. The composite business activity index (PMI) also turned out to be positive: 48.5 versus 46.8. Such positive statistics allowed pound buyers to find support just above 1.2000 and close yesterday with a reversal ‘bullish engulfing’ combination. If today we receive confirmation of the indicated signal in the form of any white candle, the price may return to 1.2280-1.2300.</p><p>Today&apos;s news on the business activity index in the UK construction sector for September will be important for the pair&apos;s pricing. It is also worth paying attention to the speech of Ben Broadbent, a member of the Bank of England Monetary Policy Committee.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/gbpusd-1.png" alt="Market Analysis: European Currencies Have Found a Short-term Bottom" loading="lazy" width="2000" height="896" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/gbpusd-1.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/gbpusd-1.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/gbpusd-1.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/gbpusd-1.png 2400w" sizes="(min-width: 720px) 720px" /></figure><h3>EUR/USD</h3><p>Yesterday&apos;s statistics from the eurozone turned out to be quite diverse. The services business activity index increased slightly (48.7 versus 48.4), while retail sales fell in August (-1.2% versus -0.3%). However, the price of the single European currency managed to rebound from 1.0450 and strengthen above 1.0500. Bullish engulfing is on the daily timeframe. If the market closes today above 1.0500-1.0540, the start of an upward correction in the direction of 1.0600-1.0800 may occur.</p><p>Today at 12:45 GMT+3, it is worth paying attention to the speech of the representative of the European Central Bank, Philip Lane. The president of the Deutsche Bundesbank, Nagel, is scheduled to speak a little later.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/eurusd-1.png" alt="Market Analysis: European Currencies Have Found a Short-term Bottom" loading="lazy" width="2000" height="896" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/eurusd-1.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/eurusd-1.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/eurusd-1.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/eurusd-1.png 2400w" sizes="(min-width: 720px) 720px" /></figure><h3>USD/JPY</h3><p>The rebound from the psychological level of 150.00 contributed to the beginning of a corrective pullback in the USD/JPY pair. The nearest area where the price may find support may be the range of 147.30-146.40. Important resistance is located at 149.00-149.30.</p><p>Important for the pair’s pricing will be weekly data on the number of applications for unemployment benefits in the US, the publication of which will take place today at 15:30 GMT+3. Tomorrow, the US employment report for September is anticipated.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/usdjpy-1.png" alt="Market Analysis: European Currencies Have Found a Short-term Bottom" loading="lazy" width="2000" height="896" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/usdjpy-1.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/usdjpy-1.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/usdjpy-1.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/usdjpy-1.png 2400w" sizes="(min-width: 720px) 720px" /></figure>