Euro-Dollar Sees Modest Decline, Moving within Ascending Channel【January 10, 2024】
Fundamental Analysis
Tokyo Consumer Price Index falls short of expectations, household spending worse than anticipated.
Japan’s real wages decline for the 20th consecutive month.
Market in wait-and-see mode ahead of U.S. Consumer Price Index announcement.
EURUSD Technical Analysis
Analysis of the daily chart of the Euro-Dollar market. Ichimoku Kinko Hyo’s baseline functioning as support. Currently moving within an ascending channel, with the lower channel line as a critical support to watch.As the downtrend is midway, a decline to the channel’s lower limit is expected. Below the channel’s lower limit, the Ichimoku cloud and the 240-day moving average line are awaited, unlikely to be easily breached.A rebound near the key level of USD 1.0865 is anticipated, suggesting a bearish trading perspective until then.
Day Trading Strategy (1-Hour Chart)
Analysis of the 1-hour chart of the Euro-Dollar market. Currently forming a significant range, with recent low near USD 1.0875. RSI using 40 as support, trending below the 240 moving average. A fall to around USD 1.0865 is considered if RSI breaks below 40 when the dollar strengthens.For day trading, consider contrarian buying with an entry point at USD 1.0877, a settlement point at USD 1.0920, and a stop loss at USD 1.0840.
Support and Resistance Lines
Upcoming significant support and resistance lines:
USD 1.0876 – Recent lowUSD 1.0865 – Weekly support line
Market Sentiment
EURUSD: Sell: 48%, Buy: 52%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)ECB Official Speech17:20
*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.
