Slobodan Drvenica
Windsor Brokers
EUR/USD
EURUSD is consolidating in early Friday after nearly 0.9% drop on Thursday, sparked by higher than expected US inflation in September, which revived concerns that the fight with inflation is not over yet and added to expectations that the Fed would keep its policy tight for some time.
Technical picture returned to full bearish setup on daily chart after Thursday’s loss, as the Euro’s recent recovery stalled at double-Fibo resistance at 1.0640 zone (23.6% of 1.1275/1.0448 and 38.2% of 1.0945/1.0448).
Fresh weakness retraced nearly 61.8% of the recent 1.0448/1.0640 recovery leg, increasing risk of deeper fall after consolidation.
Friday’s close below broken 10DMA (1.0544) to confirm bearish stance and risk retest of 1.0448 (2023 low) and attack at 1.0405 pivot (50% retracement of larger 0.9535/1.1275 advance), loss of which to signal continuation of the downtrend from 1.1275 (2023 peak).
Extended upticks should be capped under falling 20DMA (1.0579) to keep fresh bears in play.
Res: 1.0565; 1.0579; 1.0617; 1.0640.
Sup: 1.0526; 1.0482; 1.0448; 1.0405.
Interested in EUR/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0500, looks to post weekly losses
EUR/USD extended its daily decline toward 1.0500 in the second half of the American session, pressured by the souring market mood. Despite the bullish action seen earlier in the week, the pair remains on track to register weekly losses.
GBP/USD falls below 1.2150 as USD rebounds
Following an earlier recovery attempt, GBP/USD turned south and declined below 1.2100 in the second half of the day on Friday. The negative shift seen in risk mood amid rising geopolitical tensions helps the US Dollar outperform its rivals and hurts the pair.
Gold advances to fresh multi-week highs above $1,920
Gold extended its daily rally and climbed above $1,920 for the first time in over two weeks on Friday. Escalating geopolitical tensions ahead of the weekend weigh on T-bond yields and provide a boost to XAU/USD, which remains on track to gain nearly 5% this week.
Bitcoin could be an alternative to US-listed companies but not in the short term
Bitcoin has dipped below $27,000, adding to the subdued cryptocurrency market sentiment. While short-term price concerns persist, analysts predict a rebound based on historical figures.
Nvidia Stock Forecast: NVDA slips as Biden administration attempts to close AI chip loophole
Nvida's stock price opened marginally lower on Friday after Reuters reported that the Biden administration is attempting to close a loophole that allowed Chinese companies access to state-of-the-art computer chips used for AI.