EURUSD Technical Analysis – October-10-2023
FxNews – The EURUSD currency pair is making some interesting moves. In this article, we meticulously explore the intricacies of EURUSD analysis. Despite a slight increase during the American trading session, the currency pair remained below the closing price of the previous Friday. The US Dollar’s weakness wasn’t enough to push the pair above 1.0600, and the Euro was the weakest among the G10 currencies on Monday.
The Euro was particularly affected by new geopolitical concerns, causing it to fall against other major currencies. This was evident in the 10-year German bond yield, which saw a significant drop of more than 4.50% to 2.76%. The EURCHF moved towards 0.9550, and EURGBP dipped below 0.8640.
The EURUSD Analysis also revealed that German Industrial Production had a slight decline of 0.2% in August, which was worse than the anticipated decrease of 0.1%. Additionally, the Eurozone Sentix Investor Confidence dropped in October to -21.9, which was higher than the market consensus of -25.
Looking ahead, there are no significant reports scheduled for release in either the Eurozone or the US on Tuesday. However, traders will be keeping a close eye on the US Consumer Price Index due to be released on Thursday, which is considered a key indicator for the week.
During the American session, the US dollar strengthened across all fronts, benefiting from an improvement in risk sentiment following market opening after an attack in Israel by Hamas. The US Dollar Index (DXY) reached a peak at 106.60 but then pulled back to 106, ending with modest losses due to a decline in US bond yields.
EURUSD Technical Analysis
The EURUSD currency pair is currently demonstrating a bullish trend, as it trades above the pivot point and the median line of the descending channel on the 4-hour chart. This upward momentum is further supported by the Relative Strength Index (RSI), which is maintaining a position above the crucial 50 line, indicating a certain robustness in this bullish scenario.
Should the EURUSD price manage to sustain its position above the pivotal 1.054 mark, it could potentially open up an opportunity for bullish traders to drive up the price towards the resistance level situated at 1.064. This scenario could unfold as a testament to the strength and resilience of the bulls in the forex market.
However, every coin has two sides in this EURUSD analysis. In contrast to the bullish outlook, if the EURUSD price experiences a drop and closes beneath the median line, it could signal a continuation of the downward trend for this currency pair. In such a case, the first line of defense for the bulls could be found at 1.045.
This dynamic interplay between bullish and bearish forces in the forex market underscores the importance of closely monitoring these key technical indicators and price levels in order to make informed trading decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.