Oct 25, 2022
VOT Research Desk

Market Insights, Considerations & Analytics

Lack of significant data or events limits quick actions in front of the ECB and US GDP.

Bears are unenthusiastic about hard line central bank wagers and negative PMIs.

As a 75 bps rate hike has already been announced, bulls would prefer to learn more about the ECB’s QT.

The rate of Fed rate increases will slow down a bit. The fact that the FOMC is starting to mention that starting in December, the increments will be lesser and that there won’t be as much strain on the currency should not come as a complete surprise. That, nevertheless, also implies that monetary policy will not keep supporting the dollar and that this argument has run its course.

As buyers struggle with a four-month-old resistance line, the EUR/USD charts show a four-day advance.

Lack of significant data or events limits quick actions in front of the ECB and US GDP.

Bears are unenthusiastic about hard line central bank wagers and negative PMIs.

As a 75 bps rate hike has already been announced, bulls would prefer to learn more about the ECB’s QT.

Bulls on the EUR/USD have trouble maintaining control after a four-day upswing printed at the fortnightly peak near 0.9900. The important currency pair uses this to trace the lackluster markets leading up to Tuesday’s European session.

Nonetheless, it should be highlighted that the purchasers were able to maintain control due to the US dollar’s weakness, softened yields, and lack of Fedspeak. A cautious optimism in the Asian session brought on by advances from China and Japan may also work in favor of the upward trend.

The EUR/USD rising momentum also appears to be supported by discussions that the European Central Bank (ECB) is open to reversing the bond moves it took as part of Numerical Tightening (QT) to address the problems caused by the credit crisis.

In addition, the Fed policymakers’ most recent statements haven’t been outstanding amid worries about slowing the rate hike, which has allowed the US dollar to drop from its multi-year high. However, the US Dollar Index (DXY) is still battling to maintain its week-start gains as it hovers around 111.85, taking rounds to intraday lows and fighting to overcome negative Treasury bond yields and guarded market confidence.

Following on, the second-tier US housing statistics and consumer confidence will follow Germany’s IFO sentiment figures for October to determine short-term EUR/USD movements. The pair is less likely to make significant swings, unless unexpected events occur, although buyers may maintain control because Fed hawks are disrupting the pre-meeting silent period.

On Monday, the pair bears were encouraged by worries of escalating tension in the West-Russian conflict and dismal October activity data from the US, UK, Europe, as well as Germany.

Technical examination

Beyond the one-month-old trend line support, at the latest near 0.9700, a pullback in the EUR/USD price remain unclear. Before the bulls assault the monthly top near the parity level, a downward-sloping resistance line from early June approximately 0.9900 appears to be their main obstacle.

Technical Parameters and Indicators

EUR/USD

Oct 25, 2022

Moving Averages :Buy (6) Sell (6)

Technical Indicators: Buy (6) Sell (2)

Pivot Points

Technical Indicators

Moving Averages