Resistance is encountered by the EURUSD before 1.0100.

VOT Research Report

Analytics and Recommendations

Just below the 1.0100 level, the EURUSD is under pressure.

The outcome of the US midterm elections continues to be the focus of the markets.

Later in the week, US inflation data will be the focus.

As long as sellers are concentrated near 1.0100, the EURUSD has had difficulty testing or breaking through that important resistance area on Wednesday.

EURUSD: Around 1.0100, upward is constrained

The EURUSD surrenders some gains following three straight days of gains and in response to yet another failed attempt to re-enter or cross the 1.0100 area, usually on the back of a lacklustre dollar recovery.

The current shift in sentiment toward the dollar, which was especially sparked by October’s Payrolls, has been supporting the pair’s significant upside bias and the remainder of a risk-associated sector. However, the change in the money markets has been quite apparent, with yields stagnating near the upper half of the recent range on both sides of the Atlantic.

There are no noteworthy data points in Euroland; the only scheduled auction is for a 10-year Bund. MBA Mortgage Applications must be submitted in the US in the first turn, and they are followed by durable goods orders and speeches by J. Williams and T. Barkin of the FOMC.

What to look out for locally In the midst of yet another bullish push in the dollar, the euro (EURUSD) is under some selling pressure close to the 1.0100 level.

Price movement surrounding the euro is anticipated to closely track dollar trends, geopolitical risks, and the Fed-ECB disparity in the interim. The primary barrier to a long-term rebound in the pair is now the Fed’s recent decision to raise rates and the possibility of a tighter stance going forward.

In the long run, the weak feeling around the euro is further exacerbated by the growing suspicion of a potential regional recession, which appears to be supported by declining sentiment indicators as well as an impending downturn in some fundamentals.

Italy’s industrial production (Thursday) and Germany’s final inflation rate are two important events in the euro zone this week (Friday).

Continuation of the ECB’s rate hike cycle vs rising recession concerns are important topics simmering in the background. Impact of the conflict in Ukraine and the ongoing energy shortage on the prognosis for inflation and regional economic growth.

Key levels to watch in the EURUSD

The pair is currently down 0.09 percent at 1.0061, and a break of 0.9730, the month’s low set on November 3) will lead to 0.9704 (the week’s low set on October 21) and eventually 0.9631. (monthly low October 13). Alternatively, preliminary resistance is found at 1.0096 (monthly high November 8), followed by 1.0197 (monthly high September 12), and ultimately 1.0368. monthly high August 12

Daily Simple Moving Averages