Slobodan Drvenica
Windsor Brokers
EUR/USD
The Euro is holding a bit firmer footing in early European trading on Thursday after dollar failed to benefit more from recent hawkish comments from Fed officials.
Fresh strength might be generating an initial reversal signal after yesterday’s action ended in inverted hammer candle and oversold stochastic turned north.
However, this is still insufficient and more action at the upside will be needed to verify bullish signal, as momentum indicator on daily chart is still in the negative territory.
Fresh recovery pressures initial Fibo barrier at 1.0754 (23.6% of 1.1032/1.0669 bear-leg), but acceleration through 1.0800/20 zone (Fibo 38.2% / 10DMA) is needed to ease downside pressure and open way for stronger recovery.
Otherwise, limited upticks would likely mark a correction ahead of continuation of a bear-leg from 1.1032 (Feb 2 peak).
Lower than expected figures of German harmonized CPI in January contributed to Euro’s fresh strength, but markets look for more signals.
European Commission meets today and will release its economic growth forecast, while weekly jobless claims are the key release in US.
Traders await stronger signals from the US inflation report, due next Tuesday.
Res: 1.0781; 1.0807; 1.0819; 1.0850.
Sup: 1.0679; 1.0590; 1.0573; 1.0483.
Interested in EUR/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0800 as mood improves
EUR/USD preserves its recovery momentum and trades in positive territory above 1.0800 on Monday. In the absence of high-tier data releases, the improving risk mood makes it difficult for the US Dollar to find demand and helps the pair edge higher.
GBP/USD rises toward 1.3000 on renewed USD weakness
GBP/USD holds its ground and advances to the 1.3000 area in the second half of the day on Monday. Following the previous week's rally, the US Dollar struggles to find demand as the risk mood improves on Monday, allowing the pair to stretch higher.
Gold retains its bullish bias around $2,740
Gold is having a hard time building on Friday's gains and trades in a narrow band below $2,750 on Monday. Nevertheless, safe-haven demand stemming from Middle East tensions and US election jitters help XAU/USD limit its losses.
Seven fundamentals to watch: US elections run-up, GDP and Nonfarm Payrolls mean a spooky Halloween Premium
Spooked? Ahead of Halloween, markets opened with several gaps, most notably on JPY charts, following the surprising election results in Japan. It is going to get even busier with the US presidential election coming soon – and a string of all-important macroeconomic data points.
November flashlight for the FOMC blackout – Period dialing back the pace of easing
The FOMC started its nascent easing cycle with a bang, opting to reduce the fed funds target range by 50 bps to 4.75%-5.00% at its last meeting on September 18. But further policy easing seems set to proceed at a slower pace.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.