EUR/USD:BUY From SUPPORT Waiting the The ISM Services PMI LONG

EUR/USD in a strong bullish rally today open the market with a reversal on the previous support area where the price by the confluence with the presence of the 50 moving average plus the 38.2% FIBO level can find the right pullback to continue his rally.

Risk appetite strengthened noticeably last week as investors grew confident that the Fed could curb inflation without plunging the U.S. economy into a deep recession. Fed Chairman Jerome Powell signaled Wednesday that the time to moderate the pace of rate hikes might come as soon as the next meeting in December. The PCE consumer spending price index and ISM manufacturing index, released Thursday, confirmed the Fed's success in controlling inflation.

However, Friday's strong labor market report spoiled that favorable picture. Stocks in the U.S. and Europe went sharply negative on the release of the jobs data, U.S. Treasury 2-year note yields jumped 13 bps to 4.35%, and 10-year bond yields rose 9 bps to 3.6%. The dollar index, which fell to its lowest since June 28 at 104.37p before employment statistics were released today, bounced back above 105p.

The ISM Services PMI today will be crucial to understand the scenario about EUR/USD

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