Key Highlights
- EUR/USD started an upside correction from the 1.0335 zone.
- It cleared a connecting bearish trend line with resistance at 1.0520 on the 4-hour chart.
- USD/JPY is struggling and might drop below the 148.80 support.
- The US ISM Manufacturing Index could increase from 46.5 to 47.5 in Nov 2024.
EUR/USD Technical Analysis
The Euro formed a base above 1.0350 and started a recovery wave against the US Dollar. EUR/USD cleared the 1.0450 and 1.0500 levels to move into a positive zone.
Looking at the 4-hour chart, the pair surpassed a connecting bearish trend line with resistance at 1.0520 on the same chart. There was a move above the 38.2% Fib retracement level of the downward move from the 1.0936 swing high to the 1.0333 low.
The pair even tested the 100 simple moving average (red, 4-hour). On the upside, the pair could face resistance near the 1.0635 level.
The 50% Fib retracement level of the downward move from the 1.0936 swing high to the 1.0333 low is also near 1.0635. The first major resistance is near the 1.0650 level. A close above the 1.0650 level could set the tone for another increase.
The next major resistance could be the 200 simple moving average (green, 4-hour) at 1.0705, above which the price could climb higher toward the 1.080 resistance.
On the downside, immediate support sits near the 1.0500 level. The next key support sits near the 1.0450 level. Any more losses could send the pair toward the 1.0380 level.
Looking at USD/JPY, the pair remains in a bearish zone and there are chances of more downsides below the 148.80 support.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Nov 2024 – Forecast 45.2, versus 45.2 previous.
- UK Manufacturing PMI for Nov 2024 – Forecast 48.6, versus 48.6 previous.
- US Manufacturing PMI for Nov 2024 – Forecast 48.8, versus 48.8 previous.
- US ISM Manufacturing Index for Nov 2024 – Forecast 47.5, versus 46.5 previous.
