EURHKD Forecast – November-6-2023


In today’s comprehensive EURHKD forecast, we will first scrutinize the current economic conditions in Hong Kong. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURHKD pair.

Hang Seng’s Impressive Climb

The Hang Seng Index experienced a significant surge, leaping by 302.47 points or 1.71%, to conclude at 17,966.60 on Monday. This marks the third consecutive session of bullish momentum. The surge was spurred by an uptick in US stock futures, following a week where all major averages recorded their best performance of the year.

Investors are optimistic about an end to the Federal Reserve’s tightening path, a weaker-than-expected monthly jobs report that pushed bond yields lower, and robust earnings reports. The index is now hovering around a three-week high, further bolstered by Chinese Premier Li Qiang’s pledge on Sunday to increase imports and continue to make economic globalization more open, balanced, and beneficial for all.

The tech sector led the rally with a rise of around 4%, followed by consumer goods, financials, and property. Standout performers included Li Auto, which skyrocketed by 11.3%, and Kuaishou Tech, which gained 7.1%. Meanwhile, China Resources Beer, Longfor Group, and Meituan saw impressive gains of 6.6%, 5.9%, and 5.6% respectively. Traders are now preparing for the release of several key Chinese data for October this week, including export and import figures, inflation data, new bank loans, and vehicle sales. These data points will provide further insight into the health of the Chinese economy and could influence future market movements.

EURHKD Forecast: A Technical Analysis

EURHKD Forecast - November-6-2023

EURHKD Forecast – Daily Chart

The EURHKD currency pair has recently experienced a breakout from its bearish channel. Currently, the pair is undergoing a test at the 38.2% level of the Fibonacci retracement. Simultaneously, the RSI indicator is nearing the overbought area and signaling divergence. This suggests a potential correction or a continuation of the bearish trend. As a result, caution is advised when considering going long on this currency pair.

EURHKD Forecast

EURHKD Forecast – 4H Chart

For a more detailed perspective, let’s zoom into the EURHKD 4H chart. The trend appears bullish on this timeframe, with the price breaking out of the bullish channel and trading in the overbought area. The RSI indicator also reflects this overbought status. It’s important to note that the pair has room to rise and test the R1 (8.46) resistance level. The Kernel line and the 8.3 pivot point further support this bullish scenario. However, if these levels are breached, the bullish scenario could be invalidated.

Stay tuned for more updates on the EURHKD forecast and its potential movements. Remember, investing in forex involves risk, and it’s always important to make informed decisions.

  • 6 November 2023
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