Antony_NPBFX
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EUR/USD: the euro is recovering after a significant decline the day before 25.10.2023
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 EUR/USD pair is showing a slight corrective growth, trying to recover after a rather sharp decline the day before, which did not allow the instrument to consolidate at new local highs from September 20. Quotes are again testing 1.0600 for a breakout, but investors are in no hurry to open new positions ahead of the European Central Bank (ECB) meeting scheduled for Thursday. No new steps are expected from the regulator (as well as from the US Federal Reserve and the Bank of England next week) aimed at further tightening monetary policy. At the same time, inflation dynamics in the region remain far from target levels, so the rhetoric of the monetary authorities probably will not exclude a similar scenario in the future.
Meanwhile, investors are analyzing business activity statistics published in the EU and the US the day before. While long-term "hawkish" policies in the eurozone have contributed to unprecedented inflation, which has fallen to its lowest level since October 2021, the measures taken by officials have had a negative impact on the economic development dynamics of countries in the region, which are still feeling the effects of last year's sharp increases in energy prices. The German Manufacturing PMI from S&P Global in October rose from 39.6 points to 40.7 points, while analysts expected an increase to 40.0 points, and the Services PMI decreased from 50.3 points to 48.0 points with a forecast of 50.0 points. In the eurozone, the Manufacturing PMI adjusted from 43.4 points to 43.0 points, and the Services PMI went down from 48.7 points to 47.8 points. Business activity in the European economy is at a five-year low, significantly increasing the risks of an economic downturn in the eurozone as a whole, while a recession in Germany appears to have already begun.
American data turned out to be noticeably better: the Manufacturing PMI from S&P Global in October rose from 49.8 points to 50.0 points, while the market expected a decrease to 49.5 points, and the Services PMI strengthened from 50.1 points to 50.9 points, also ahead of forecasts of 49.9 points. At the same time, the Composite PMI rose from 50.2 points to 51.0 points. Thus, the national economy remains resilient to increases in borrowing costs by US Federal Reserve officials, which may convince them of the need for a new tightening of monetary policy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. the price range changes slightly, limiting further development of the "bulls" in the short term. MACD is slightly strengthening keeping a weak buy signal (located above the signal line). Stochastic, having retreated from the level of "80", is developing confident downward dynamics, signaling in favor of the development of a corrective trend in the near future.
Resistance levels: 1.0600, 1.0630, 1.0660, 1.0700.
Support levels: 1.0561, 1.0530, 1.0500, 1.0450.
Trading tips
Long positions can be opened after a breakout of 1.0630 with the target of 1.0700. Stop-loss — 1.0600. Implementation time: 2-3 days.
The return of a "bearish" trend with the breakdown of 1.0561 may become a signal for new short positions with the target at 1.0500. Stop-loss — 1.0600.
Use more opportunities of the NPBFX analytical portal: analytics
You can find more actual analytical reviews on other popular currency pairs, metals and CFDs on the NPBFX online portal. Daily analytics with charts, current market prognoses and trading scenarios in the Feed section are available. Get free and unlimited access to the online portal after registering on the official website of NPBFX Company.
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 EUR/USD pair is showing a slight corrective growth, trying to recover after a rather sharp decline the day before, which did not allow the instrument to consolidate at new local highs from September 20. Quotes are again testing 1.0600 for a breakout, but investors are in no hurry to open new positions ahead of the European Central Bank (ECB) meeting scheduled for Thursday. No new steps are expected from the regulator (as well as from the US Federal Reserve and the Bank of England next week) aimed at further tightening monetary policy. At the same time, inflation dynamics in the region remain far from target levels, so the rhetoric of the monetary authorities probably will not exclude a similar scenario in the future.
Meanwhile, investors are analyzing business activity statistics published in the EU and the US the day before. While long-term "hawkish" policies in the eurozone have contributed to unprecedented inflation, which has fallen to its lowest level since October 2021, the measures taken by officials have had a negative impact on the economic development dynamics of countries in the region, which are still feeling the effects of last year's sharp increases in energy prices. The German Manufacturing PMI from S&P Global in October rose from 39.6 points to 40.7 points, while analysts expected an increase to 40.0 points, and the Services PMI decreased from 50.3 points to 48.0 points with a forecast of 50.0 points. In the eurozone, the Manufacturing PMI adjusted from 43.4 points to 43.0 points, and the Services PMI went down from 48.7 points to 47.8 points. Business activity in the European economy is at a five-year low, significantly increasing the risks of an economic downturn in the eurozone as a whole, while a recession in Germany appears to have already begun.
American data turned out to be noticeably better: the Manufacturing PMI from S&P Global in October rose from 49.8 points to 50.0 points, while the market expected a decrease to 49.5 points, and the Services PMI strengthened from 50.1 points to 50.9 points, also ahead of forecasts of 49.9 points. At the same time, the Composite PMI rose from 50.2 points to 51.0 points. Thus, the national economy remains resilient to increases in borrowing costs by US Federal Reserve officials, which may convince them of the need for a new tightening of monetary policy.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. the price range changes slightly, limiting further development of the "bulls" in the short term. MACD is slightly strengthening keeping a weak buy signal (located above the signal line). Stochastic, having retreated from the level of "80", is developing confident downward dynamics, signaling in favor of the development of a corrective trend in the near future.
Resistance levels: 1.0600, 1.0630, 1.0660, 1.0700.
Support levels: 1.0561, 1.0530, 1.0500, 1.0450.
Trading tips
Long positions can be opened after a breakout of 1.0630 with the target of 1.0700. Stop-loss — 1.0600. Implementation time: 2-3 days.
The return of a "bearish" trend with the breakdown of 1.0561 may become a signal for new short positions with the target at 1.0500. Stop-loss — 1.0600.
Use more opportunities of the NPBFX analytical portal: analytics
You can find more actual analytical reviews on other popular currency pairs, metals and CFDs on the NPBFX online portal. Daily analytics with charts, current market prognoses and trading scenarios in the Feed section are available. Get free and unlimited access to the online portal after registering on the official website of NPBFX Company.
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.