FxNews—In today’s comprehensive USDCZK forecast, we will first scrutinize the current economic conditions in the US and Czech Republic. Then, we will meticulously delve into the details of the technical analysis of the USD CZK pair.
United States
Bloomberg – Hilton Worldwide (HLT), Thermo Fisher Scientific (TMO), and Southern Copper (SCCO) reported earnings per share that surpassed market predictions. The dollar index remains strong, above 106, boosted by robust US manufacturing and service activity data. This strength is further supported by the euro’s struggles due to unexpected downturns in Eurozone business activities.
All eyes are on the upcoming US GDP growth estimate for Q3 and PCE inflation details. Additionally, with the Federal Reserve’s next meeting around the corner, anticipation builds on interest rate decisions, though a steady rate is anticipated. The dollar’s performance varied against other major currencies.
Czech Republic
In October 2023, consumer confidence in the Czech Republic rebounded to 92.7, a significant increase from September’s six-month low of 88.3. This rise is attributed to fewer households anticipating economic decline in the coming year. Additionally, fewer respondents foresee their financial situation worsening in the next year.
Although the current sentiment towards making large purchases remains slightly negative, it’s less so than before. Overall, perceptions of the current financial situation have remained stable since last month.
USDCZK Forecast – Comprehensive Guide for October 2023
The USDCZK has triumphantly returned to the bullish channel on the daily chart, dismissing the October 23 breakout as a false alarm. Given the bearish divergence signaled by the awesome oscillator, a downturn from the R1 (23.507) resistance was anticipated. At the time of writing, the USDCZK is hovering around 23.33.
A closer look at the 4H chart provides valuable insights into potential future movements of the USDCZK. The RSI indicator flashes a bullish signal, crossing above the 50 level. Furthermore, the bulls have broken out of the minor bearish channel and climbed above the pivot point at 23.30. Based on current price action and technical indicators, it seems probable that the bullish trend will continue its upward trajectory towards R2 (23.608).
However, if the bears regain control and drive the price back into the bearish channel (indicated in red), we could see a decline to lower support levels. The critical level for the bullish scenario to remain valid is 23.2.