In today’s USDRON analysis, we will first scrutinize the current economic condition in Romania. Following that we will meticulously delve into the details of the technical analysis pertaining to USD RON.
Romanian Q2 GDP Update
In the second quarter of 2023, Romania’s economy grew by 1%, which is less than the 2.4% growth in the quarter before. This is the ninth time in a row that the economy grew, 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 a bit 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% in this quarter, which is better than a 1% drop in the previous quarter.
USDRON Forecast: Technical Analysis
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 both weekly and daily chart movements, as well as technical indicators, there’s a potential trajectory pointing towards a dip to the S1 level. For this descent to become a reality, it’s imperative for the bears to 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.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.