fxs_header_sponsor_anchor

News

EUR/USD Price Analysis: Pullback meets sellers near 20-DEMA

  • EUR/USD falls back from 20-DEMA as the risk-aversion theme strengthens.
  • The US Dollar appeal improves due to some increment in the odds of one more interest rate increase from the Fed.
  • The ECB is expected to maintain interest rates steady at 4.5% to avoid a slowdown.

The EUR/USD pair retreats after a short-lived pullback move to near the 1.0550 in the European session. The major currency pair faced an intense sell-off as the appeal for the US Dollar improved amid deepening Middle East tensions and some increment in expectations of one more interest rate increase from the Federal Reserve (Fed) by the year-end.

The US Dollar Index (DXY) recovered strongly to near 106.60 and is expected to extend further as the United States is resilient unlike other economies, which are struggling to absorb the consequences of higher interest rates by the central bankers.

Meanwhile, the European Central Bank (ECB) is expected to keep interest rates unchanged in November as the Eurozone economy is facing the issues of poor economic prospects. To safeguard the shared continent from a slowdown, the ECB is expected to maintain interest rates steady at 4.5%.

EUR/USD drops vertically after a less-confident pullback to near the 20-day Exponential Moving Average (EMA) to near 1.0600. The shared currency pair trades near the horizontal support of the Broadening Triangle chart pattern, which is plotted from November 14 high at 1.0482. The upward-sloping trendline of the aforementioned chart pattern is placed from February 2 high at 1.1033.

The Relative Strength Index (RSI) (14) struggles to climb into the 40.00-60.00. A failure in the same would indicate that the downside momentum has been firmer.

A fresh downside would be seen if the asset drops below October 3 low at 1.0448. This would expose the asset to a fresh 10-month low around 1.0400. A slippage below the latter would make way for 11 November 2022 high at 1.3642.

On the flip side, a recovery move above October 12 high at 1.0640 would drive the asset toward September 6 low around 1.0700, followed by September 20 high at 1.0737.

EUR/USD daily chart

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.