In today’s USDRON analysis, we will examine Romania’s current economic condition and then meticulously delve into the details of USDRON’s technical analysis.
Romanian Q2 GDP Update
Bloomberg—In the second quarter of 2023, Romania’s economy grew by 1%, less than the 2.4% growth in the previous quarter. This is the ninth time in a row that the economy has grown, but it’s the smallest growth in these nine times. People spent less (4% growth instead of 6.4% in the earlier quarter), and businesses invested slightly less (9.6% growth instead of 10.4%).
Also, the country exported less and imported even less than before. However, government spending went up to 11.7% from 6.4%. If we adjust for seasons, the economy grew 1.7% this quarter, better than a 1% drop in the previous quarter.
USDRON Forecast – October Key Levels and Prediction
The USDRON currency pair faced resistance, failing to move beyond its weekly pivot at 4.7. As we began October, bearish momentum shaped the price pattern, culminating in the formation of an inverted hammer.
For traders keen on understanding the nitty-gritty, let’s delve into the daily charts of the USDRON. The detailed view reveals the currency pair breaking free from its bearish trajectory. However, as of now, it remains nestled within the confines of the bearish channel, specifically positioned above the pivotal point.
Synthesizing insights from weekly and daily chart movements and technical indicators, a potential trajectory points towards a dip to the S1 level. For this descent to become a reality, the bears must achieve a close beneath the pivot.
However, the market is always a two-way street. If the USD to RON were to escape the clutches of its bearish channel, depicted in red for clarity, it could signify the end of its corrective phase. Such a movement could see the USDRON pushing upwards, aiming for the R1 target, hovering around 4.786.