Euro Dollar Rises, Surpassing Recent Highs to Trigger an Uptrend【October 24, 2023】
Fundamental Analysis
The Euro Dollar sharply increased, surpassing its recent highs and entering an uptrend.
The risk from the Gaza conflict has slightly eased, taking a breather from last week’s drastic movements.
The Euro Consumer Confidence Index exceeds market expectations, hovering around USD 1.067.
EURUSD Technical Analysis
Analyzing the daily chart of the Euro Dollar, the Consumer Confidence Index in the Eurozone outperformed market expectations. Additionally, there are slight signs of easing tensions in the Middle East, which might have led to a potential short-covering in an oversold market.
From a technical perspective, it clearly surpassed the recent high of USD 1.0635, initiating an uptrend. Though there was a downtrend since July 2023, this recent rise provides a sense of relief. Plotting the Fibonacci expansion, it has exceeded 61.8%, suggesting a potential target of USD 1.0685. This could be a considerable resistance level.
The RSI is at 51, and its movement above 50 further validates the shift to an uptrend.
Day Trading Strategy (Hourly)
Analyzing the 1-hour chart for Euro Dollar. It’s hovering around 1.067 USD, and 1.0685 USD corresponds to 100% of the Fibonacci expansion. There’s a possibility of a pullback, so it’s advisable to wait for a dip.
The RSI is above 70, and profit-taking movements are likely when it falls below 70. The dip could go down to around 1.065 USD. Considering a buying entry when the RSI hits around 50.
Specific day trading strategy would be to enter at 1.0635 USD, settle at 1.068 USD, and set a stop at 1.0610 USD.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
1.0747 USD – Major resistance line1.0650 USD – Major support zone
Market Sentiment
EURUSD Sell: 65% Buy: 35%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)Bank of Japan Core CPI14:00UK Employment Statistics15:00EU Manufacturing Purchasing Managers Index17:00Remarks by ECB President Lagarde21:30US Service Sector Purchasing Managers Index22:45
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
