EUR/USD may drop to 1.02-ING
2022.11.29 03:36
EUR/USD may drop to 1.02-ING
Budrigannews.com – Yesterday, the pair showed a lot of volatility, reaching a high of 1.0497, its highest point since June 29, before falling to a low of 1.0331 last night and finally settling at 1.0360 this morning (at the time of writing).
Yesterday, protests in China initially caused a wave of risk aversion that resulted in a lower opening on Sunday evening, causing news to be particularly heavy for the Euro/Dollar during the day.
The dollar’s general decline, which did not appear to be influenced by any particular headline, was the driving force behind the strong rebound that occurred on Monday morning.
The improved mood was attributed by some analysts to the expectation that the unrest in China would eventually result in an anticipated relaxation of the zero-COVID policy.
Be that as it may, venders then, at that point, answered as the EUR/USD moved toward the critical 1.05 level, sending the cash pair lower.
The afternoon was enlivened, but not significantly, by a few speeches delivered by central bankers, including ECB President Christine Lagarde and St. Louis Fed President James Bullard.
From a charting perspective, the EUR/USD failed once more to stay above its 200-day moving average yesterday, as shown on the chart below.
Since November 15, when the EUR/USD price tested it for the first time since June 2021, many traders have closely followed this indicator.The Euro/Dollar has attempted multiple times since then to rise above this indicator, most recently yesterday morning.
However, the attempt was unsuccessful each time.
Analysts, on the other hand, believe that a more or less extensive correction of the Euro could result from this ongoing inability to stay above the 200-day MA.In this context, the psychological threshold of 1.03, followed by the low on November 21 at 1.0223, are the first potential supports that will be taken into consideration on Tuesday.
Despite a packed schedule, ING anticipates a bearish week for the Euro/Dollar
This is especially the opinion of ING analysts, who stated in a note last night that “the second half of the week could potentially push EUR/USD back toward the 1.02 area,” noting that the anticipated inflation data for the Eurozone that will be released tomorrow could be crucial.
The bank remarked in this regard, “The question is whether inflation will fall back from the highs reached (not far from 11% year-on-year) and allow the European Central Bank to ease its hawkish rhetoric a bit.”
Looking forward to now, EUR/USD dealers will watch out for November’s European insights at 2pm.
The index at 4 p.m. will be the primary economic release across the Atlantic that could potentially affect the EUR/USD.
