Euro Pays Back Losses
2022.11.07 18:08
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is beginning the new week of November confidently and cheerfully, balancing near 0.9940.
The market has fully recovered from the damage done by the November meeting of the US Federal Reserve System. The US labor market statistics on Friday calmed investors down, showing that the employment sector has some margin of safety.
At the same time, market participants presume that the Fed will lift the interest rate by 50 base points in December and then pause tightening as the economy nears recession. The Fed has not yet given any hints on this.
Technical View
On H4, EUR/USD has completed an impulse of growth to 0.9965. Today the market is forming a consolidation range under this level. With an escape downwards, a link of correction to 0.9850 should follow.
After it is over, a new growth structure should develop to 1.0044. Technically, this scenario is confirmed by the MACD. Its signal line is near zero and ready to continue growth to new highs.
EUR/USD 4-hour chart technical analysis.
On H1, EUR/USD has completed a structure of decline to 0.9730. Thanks to the news, the market managed to form an impulse of growth to 0.9965. At the moment, a consolidation range is forming under this level. An escape downward and a decline to 0.9855 are expected.
After this level is reached, a growth link might develop to 0.9950, with perspectives of trend continuation to 1.0044. The goal is local. If the quotes escape the range upwards, the trend might continue to 1.0444 outright.
Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is headed down to 50. A breakaway and trend continuation to 20 are expected.
Disclaimer: Any forecasts contained herein are based on the author’s opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews.
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