Current trend

USD strengthened against EUR after the US Federal Reserve interest rate decision: as expected, the rate was kept at the level of 2.25%. In the accompanying statement, the regulator focused on the strength of the country's economy, confirming its intentions to gradually tighten the policy, which will inevitably lead to higher interest rates. In response, investors began to buy USD actively. In turn, EUR was under pressure of the decline in the trade surplus in Germany.

As for the macroeconomic events today, US October Producer Price Index will be released. It is predicted that the value of the indicator will remain unchanged at 0.2%.

Support and resistance

On the 4-hour chart, the instrument is trading near the lower border of Bollinger bands, the price range is widened, indicating a possible continuation of the downward movement. MACD histogram is in the negative area, gradually increasing its volumes, the signal line is directed downwards.

Resistance levels: 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490.

Support Levels: 1.1330, 1.1300, 1.1268.

Trading tips

Short positions can be opened from the current level with the target at 1.1280 and stop loss 1.1360. Implementation period: 1–3 days.

Long positions can be opened from the level of 1.1430 with the target at 1.1490 and stop loss 1.1400. Implementation period: 3–5 days.

Euro vs US Dollar

BuySellSpread
1.134371.1341720

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.1337
Take Profit1.1280
Stop Loss1.1360
Support levels1.1268, 1.1300, 1.1330, 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490

Alternative scenario

RecommendationsBUY STOP
Entry Point1.1430
Take Profit1.1490
Stop Loss1.1400
Support levels1.1268, 1.1300, 1.1330, 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490
EUR/USD: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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