Markets Analysis

Eurodollar Stagnates, Fed Decides to Keep Policy Rate Unchanged【November 2, 2023】

November 02, 2023

Markets Analysis

Fundamental Analysis

  • The US Federal Reserve (Fed) decides to keep the policy rate unchanged for the second consecutive meeting, with the Fed Chair taking a dovish stance.
  • US ADP employment data falls short of market expectations, pointing to a contracting US labor market.
  • In the forex market, the dollar weakens across the board, with the Eurodollar forming a “hammer” pattern, indicating potential buying at lower levels.

EURUSD Technical Analysis

Analyzing the daily chart of the Eurodollar, the 24-day moving average acts as support, and dips are being bought. The downside appears to be solidifying, with a gradual rise evident. Upon analyzing the Fibonacci retracement, the level corresponding to 23.6% is around USD 1.0640, which seems to act as a resistance.

If it surpasses the recent high of USD 1.0695, there is a possibility of aiming for the 240-day moving average and moving higher. Today’s US unemployment claims and tomorrow’s US employment statistics are in focus.

[EURUSD/ D1]

Day Trading Strategy (Hourly)

Analyzing the 1-hour chart of the Eurodollar, it’s forming a broad range, making the direction unclear. Despite the widespread dollar weakness, the Eurodollar isn’t that strong, and there is a significant chance of reversal.

The 240-day moving average will likely act as the recent significant resistance. If it surpasses the 240-day moving average, there’s potential to rise up to around USD 1.067. The daily technicals seem to indicate upward movement, with some bullish pressure.

For a day trading approach, one might aim to buy on dips near USD 1.0565. Enter a buy at USD 1.0565, take profit at USD 1.0635, and set a stop at USD 1.0535.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

USD 1.0635 – Major resistance
USD 1.060 – Round number

[EURUSD/ H1]

Market Sentiment

EURUSD Sell: 25% Buy: 75%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
UK Policy Rate Announcement21:00
US Unemployment Insurance Claims21:30

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

Enter your email address

You can receive deals such as Milton Markets campaigns and bonuses just by registering your email address.

Technology vendor

This site or page is operated by Milton Markets.

Milton Markets is a trading name of Milton Markets Ltd. Milton Markets Ltd. is registered in Saint Lucia with registration number 2023-00166.

Risk Warning: Trading FX and CFD products involves a high risk of loss to your capital. Please read and fully understand the Milton Markets risk disclosure.

Milton Markets does not provide services to residents of the following countries,including but not limited to: Afghanistan, American Samoa, Belarus, Burundi, Canada, Central African Republic, Congo-Brazzaville, Cuba, Côte d'Ivoire, Eritrea, European Union countries, Guinea, Iran, Iraq,

Lebanon, Liberia, Libya, Mali, Myanmar, North Korea, Puerto Rico, Russia, Rwanda, Saint Vincent and the Grenadines, Somalia, Sudan, Syria, U.S. Virgin Islands, United States, Venezuela, Yemen, Zimbabwe.

Customers must be at least 18 years old or the age of legal majority in their own country.

Furthermore, opening an account is considered as registering on your own initiative without any solicitation by Milton Markets.

© MILTONMARKETS, All Right Reserved.