EURUSD Technical Analysis – October-11-2023
FxNews – In this comprehensive EURUSD market analysis, we will meticulously examine both the fundamental and technical aspects of this trading instrument, providing you with a holistic understanding of its dynamics.
EURUSD Fundamental Analysis
Reuters – On Monday, there was some bad news from the Middle East that scared people and made the markets go down. But now, people seem to be less worried, and the markets are doing better. Usually, when people are scared about what’s happening in the world, they buy more dollars because they see it as a safe option, like keeping your Pokemon cards in a protective case. But now that things are calmer, they don’t feel the need to do this as much.
Also, officials at the Federal Reserve (which is like the Pokemon card club president) have been hinting that they won’t be increasing interest rates anymore. Interest rates are like the membership fee for the Pokemon card club – if it is high, fewer people want to join. So, if interest rates aren’t going up, that’s good news for people who want to buy dollars.
However, whether this continues will depend on some important information we’re expecting over the next couple of days. This includes data on inflation and some notes from the last meeting of the Federal Reserve. These could give us some clues about what might happen next.
EURUSD Technical Analysis
This EURUSD market analysis delves into the technical indicators and key levels that are shaping this currency pair’s trajectory.
Despite the bullish sentiment surrounding the Euro in recent days, the EURUSD pair has yet to close outside of its declining channel or above the pivotal 1.065 mark. Think of this like a game of tug-of-war. The ‘bulls’ (those betting on the Euro to increase in value) have been pulling hard, but they haven’t managed to drag the ‘rope’ (the value of the Euro) past the ‘line’ (the 1.065 pivot).
As long as the EURUSD is trading below this pivot and inside the channel, our outlook remains bearish. This means we believe the value could decrease, potentially down to a support level of 1.041.
However, if the bulls manage to close above the pivot on a daily chart, this would halt the downtrend. It’s like they’ve finally pulled the rope past the line in our game of tug-of-war. This could pave the way to a resistance area of 1.081.
Stay tuned for more updates and insights into the fascinating world of currency trading. Whether you’re a seasoned trader or a newbie looking to learn, we’ve got you covered with our EURUSD market analysis.
The FxNews Team is always ready to assist you with any questions you may have about this analysis.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.