EURUSD continues to decline, with the economic contraction in the Eurozone becoming more pronounced.【July 25, 2023】
July 25, 2023
- BOJ raises price outlook to 2.5%, some reports; will this be a factor in buying the yen?
- Economic contraction in the Eurozone becomes more pronounced; Eurozone PMI readings low
- OPEC begins production cuts, oil prices outperform key technical indicators
EURUSD Technical Analysis
The EURUSD fell below the important support band of USD 1.10 to around USD 1.06. The Eurozone PMI released yesterday showed a low reading, which intensified the Euro sell-off. The EURUSD continues to fall along the descending channel and hit an important support band at USD 1.06. Also, checking the daily chart, the 24-day moving average is in sight at USD 1.04, and the area around USD 1.04 to USD 1.06 is a thick support band, so it will take some time to break below it.
Day Trading Strategy (Hourly)
At the time of writing, we judge the market to be predominantly selling. However, we do not want to rush into selling, as an important support zone is in sight. We would like to pull back sufficiently to try to sell on the return. Specifically, we may try a test sell once the price is around USD 1.10. With the ECB’s policy rate announcement coming up, we would like to be aware of the possibility of a gradual reduction in volatility.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
1.10 USD – Round number
1.06 USD – Important support zone
EURUSD Sell: 55% Buy: 45%
Today’s Important Economic Indicators
|Economic Indicators and Events||JST (Japan Standard Time)|
|U.S. Consumer Confidence Index||23:00|
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.