EURUSD is trading sideways during the European session early Friday. Anticipating Eurozone businesses PMIs for more direction. The Euro remains supported by contrasting ECB & US Fed policy perspectives, whilst the USD integrates declines prior to American PMI results.
EURUSD Review
After Wednesday’s rally, the EURUSD climbed by over 1 percent. And reached a high of over 1.1000 since November’s end. Despite the exchange rate’s short-term technical picture predicts a lower revision. Traders should avoid wagering on a sustained comeback in the American dollar following the Federal Reserve’s gentle shocker.
As expected, the ECB held key interest rates steady after its Dec meet. Though the euro zone central bank reduced its inflation forecasts. It reaffirmed that subsequent actions will guarantee that its interest rates remain at suitably stringent ranges for “just as extended as required.
Christine Lagarde, stated at the after-meeting news briefing that the central bank didn’t talk about rate reduction at their session. As well as that it hadn’t been appropriate to relax and relax as they still had a lot more to do. Lagarde’s aggressive stance boosted the Euro, helping the EURUSD to gain upward impetus.
On Friday, the European Central Bank policy official Madis Muller stated that it would be premature to proclaim success against price increases. As well as that it also seemed premature to discuss decreasing key interest rates. On a related vein, Eurozone bank governing body member & French Central Bank President Francois Villeroy. – Confirmed stated amid December’s policy meetings, neither of the officials supported rate reduction.
EURUSD: The recent gain can’t be sustained – View
In the long haul, though the European Central Bank’s policy will be pleasantly EUR -affable right now. the likelihood of recurrent inflating events will stay significant in the near future. Maybe even as early around 2024, but most notably in the year 2025. The European Central Bank intends to do better than what the marketplace anticipates. However, not enough to completely eradicate inflation worries. A (with no positive EUR) premium for risk ought to demonstrate such.
As a result, we keep predicting that the euro versus the USD will top in as little as the year 2024. And believe the EURUSD rise we foresee in the coming months will be transitory.
Source: Action Forex
Source: Action Forex
Support and Resistance Key levels
S3 1.04479 S2 1.05153 S1 1.07231 R1 1.10169 R2 1.10169 R3 1.12755
Latest modified: December 15, 2023
5– Hourly Technical Indicators
| Name | Value | Action |
| RSI(14) | 67.815 | Buy |
| STOCH(9,6) | 82.224 | Overbought* Caution |
| STOCHRSI(14) | 63.531 | Buy |
| MACD(12,26) | 0.005 | Buy |
| ADX(14) | 55.755 | Buy |
| Williams %R | -23.554 | Buy |
| Name | Value | Action |
| CCI(14) | 86.3824 | Buy |
| ATR(14) | 0.0042 | High Volatility |
| Highs/Lows(14) | 0.0055 | Buy |
| Ultimate Oscillator | 57.390 | Buy |
| ROC | 1.435 | Buy |
| Bull/Bear Power(13) | 0.0127 | Buy |
Technical Analysis
The EURUSD daily skew remains bullish towards the 1.1016 barrier level. A solid breach here will guarantee the restart of the entire rise from 1.0447. An additional rise is to be expected to attempt the 1.1274 peak. On the negative side, a break under 1.0914 small support will initially render the daily trend neutral in nature. However, for so long as the 1.0722 floor applies, the picture will remain moderately positive.
In the grand scheme of things, price movements from 1.1274 mark are considered to be a correcting structure. The subsequent phase is observed as an increase from 1.0447. Though an additional climb is not eliminated upward – ought to be capped by 1.1274 to deliver the trend’s 3rd wave. At this point, a prolonged break within the 55 daily- EMA indicates the next leg is under way for 1.0447 level and down.
