U.S. Dollar Demand Remains Strong
2022.10.17 10:45
The is slightly up on Monday and “balances” around 0.9750. The new week starts cautiously – there is a lot of action ahead.
Apart from the statistics to which the capital markets will be paying a lot of attention now (we are talking about a block of Chinese reports and US data), investors have other triggers to react to. For example, the ongoing US corporate reporting season where expectations for the results are very weak.
In addition, the market could move in the opposite direction from the risks by increasing interest in “safe” currencies. The US administration said over the weekend that it sees signs of a “cooling economy” due to the measures applied but is worth continuing the tightening. This factor is working in favor of the USD.
On the H4 chart, the EUR/USD has worked out the first link in another downside wave at 0.9633. The market has momentarily corrected to 0.9800 and is now forming a consolidation range below this level. Its extension to the level of 0.9815 is not excluded.
Technically, such a scenario is confirmed by the MACD indicator, whose signal line is under the zero level and is preparing to rise to test it. After that, we expect the development of another decline to new lows.
On the H1 chart, the EUR/USD pair has worked off the structure of a downward wave toward the level of 0.9633. The target is the first one. At the moment, the market has formed a correction link to 0.9800. We expect a decline to 0.9680. After working out of this level, the development of another unit of growth to 0.9815 is not excluded.
Further – down to the level of 0.9555. The continuation of the downward trend wave down to 0.9400 can be considered. Technically, this scenario is also confirmed by the Stochastic oscillator. Its signal line is directed downward to the 50 mark. We expect a rebound from it upwards and another rise to 80.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
