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 low
USD 1.0865 – Weekly support line

Market Sentiment

EURUSD: Sell: 48%, Buy: 52%

Today’s Important Economic Indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.