Antony_NPBFX
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EUR/USD: eurozone economy slowed down in the third quarter 02.11.2022
Good afternoon, dear forum visitors!
NPBFX offers the latest release of analytics on EUR/USD for a better understanding of the current market situation and more efficient trading.
Current trend
The European currency shows flat trading dynamics, consolidating near 0.9885.
Investors are in no hurry to open new trading positions, preferring to wait for the results of the two-day meeting of the US Federal Reserve, which are expected to give signals about the slowdown in further tightening of monetary policy. At the same time, the market expects that today the regulator will announce another interest rate hike by 75 basis points to 4.0%. In addition, the release of data from Automatic Data Processing (ADP) on Nonfarm Payrolls for October is expected, which precedes the publication of the final report on the US labor market at the end of this week.
Data on Trade Balance and Unemployment Rate will be published today in Germany. Current forecasts suggest that against the background of a sharp slowdown in exports from 1.6% to 0.1%, the trade surplus in September will decrease from 1.2 billion euros to 0.7 billion euros. The Unemployment Rate, according to expectations, will not change in October; however, the Unemployment Change is likely to increase from 14.0 thousand to 15.0 thousand. In addition, according to Eurostat, the economy of the European Union showed growth in the third quarter, and against the backdrop of estimates of Gross Domestic Product (GDP), a recession will not occur this year. In the second quarter, the indicator rose by 0.8% in the euro area and by 0.7% in the EU as a whole, but on an annualized basis in the third quarter it slowed down to 2.1%. The most difficult situation is noted in the economies of Latvia, Austria and Belgium, where GDP in the third quarter fell by 1.7%, 1.0% and 1.9% respectively. The day before, the President of the European Central Bank (ECB), Christine Lagarde, in an interview with the Delfi news agency, said that the regulator should continue to raise interest rates to fight inflation, even if the likelihood of a recession in the eurozone increases.
Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic retains a steady downtrend but is located in close proximity to its lows, which indicates the risks of oversold euro in the ultra-short term.
Resistance levels: 0.9900, 0.9950, 1.0000, 1.0050.
Support levels: 0.9850, 0.9800, 0.9750, 0.9666.
Trading tips
Short positions may be opened after a breakdown of 0.9850 with the target at 0.9750. Stop-loss — 0.9900. Implementation time: 2-3 days.
The breakout of 0.9900 may be a signal to open new long positions with the target of 1.0000. Stop-loss — 0.9850.
Use more opportunities of the NPBFX analytical portal: weekly FOREX forecast
You can learn more about the current situation on Apple Inc. and get acquainted with the weekly analytical forecast in the "Video reviews" section on the NPBFX portal. Weekly video reviews contain trends, key levels, trading recommendations for such popular instruments as GBP/USD, EUR/USD, USD/CHF, AUD/USD. In order to get free and unlimited access to video forecast and other useful instruments on the portal, you need to register on the NPBFX website.
If you have any questions about trading instruments, you can always ask an analyst in the online chat on the portal and get a free consultation of an experienced specialist.
Use the current recommendations of analysts on EUR/USD and trade efficiently with NPBFX.
Good afternoon, dear forum visitors!
NPBFX offers the latest release of analytics on EUR/USD for a better understanding of the current market situation and more efficient trading.
Current trend
The European currency shows flat trading dynamics, consolidating near 0.9885.
Investors are in no hurry to open new trading positions, preferring to wait for the results of the two-day meeting of the US Federal Reserve, which are expected to give signals about the slowdown in further tightening of monetary policy. At the same time, the market expects that today the regulator will announce another interest rate hike by 75 basis points to 4.0%. In addition, the release of data from Automatic Data Processing (ADP) on Nonfarm Payrolls for October is expected, which precedes the publication of the final report on the US labor market at the end of this week.
Data on Trade Balance and Unemployment Rate will be published today in Germany. Current forecasts suggest that against the background of a sharp slowdown in exports from 1.6% to 0.1%, the trade surplus in September will decrease from 1.2 billion euros to 0.7 billion euros. The Unemployment Rate, according to expectations, will not change in October; however, the Unemployment Change is likely to increase from 14.0 thousand to 15.0 thousand. In addition, according to Eurostat, the economy of the European Union showed growth in the third quarter, and against the backdrop of estimates of Gross Domestic Product (GDP), a recession will not occur this year. In the second quarter, the indicator rose by 0.8% in the euro area and by 0.7% in the EU as a whole, but on an annualized basis in the third quarter it slowed down to 2.1%. The most difficult situation is noted in the economies of Latvia, Austria and Belgium, where GDP in the third quarter fell by 1.7%, 1.0% and 1.9% respectively. The day before, the President of the European Central Bank (ECB), Christine Lagarde, in an interview with the Delfi news agency, said that the regulator should continue to raise interest rates to fight inflation, even if the likelihood of a recession in the eurozone increases.
Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic retains a steady downtrend but is located in close proximity to its lows, which indicates the risks of oversold euro in the ultra-short term.
Resistance levels: 0.9900, 0.9950, 1.0000, 1.0050.
Support levels: 0.9850, 0.9800, 0.9750, 0.9666.
Trading tips
Short positions may be opened after a breakdown of 0.9850 with the target at 0.9750. Stop-loss — 0.9900. Implementation time: 2-3 days.
The breakout of 0.9900 may be a signal to open new long positions with the target of 1.0000. Stop-loss — 0.9850.
Use more opportunities of the NPBFX analytical portal: weekly FOREX forecast
You can learn more about the current situation on Apple Inc. and get acquainted with the weekly analytical forecast in the "Video reviews" section on the NPBFX portal. Weekly video reviews contain trends, key levels, trading recommendations for such popular instruments as GBP/USD, EUR/USD, USD/CHF, AUD/USD. In order to get free and unlimited access to video forecast and other useful instruments on the portal, you need to register on the NPBFX website.
If you have any questions about trading instruments, you can always ask an analyst in the online chat on the portal and get a free consultation of an experienced specialist.
Use the current recommendations of analysts on EUR/USD and trade efficiently with NPBFX.