Key Highlights
- EUR/USD is correcting higher above the 0.9850 resistance.
- It broke a major bearish trend line with resistance at 0.9835 on the 4-hours chart.
- USD/JPY declined heavily after it tested the 152.00 resistance zone.
- GBP/USD could gain pace if it clears the 1.1400 resistance.
EUR/USD Technical Analysis
The Euro remained well bid above the 0.9700 zone against the US Dollar. EUR/USD started a recovery wave and was able to climb above the 0.9780 resistance.
Looking at the 4-hours chart, the pair settled above the 0.9800 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
There was also a break above a major bearish trend line with resistance at 0.9835 on the same chart. The pair even cleared the 50% Fib retracement level of the downward move from the 0.9999 swing high to 0.9631 low.
It opened the doors for more upsides and the pair might continue to rise towards 0.9920. It is near the 76.4% Fib retracement level of the downward move from the 0.9999 swing high to 0.9631 low.
The next major resistance on the upside may perhaps be near 1.0000. Any more gains could set the pace for a move towards the 1.0080 level. If there is a downside correction, the pair might test the 0.9750 support.
The next major support is near the 0.9720 level. A downside break below the 0.9720 support may perhaps send EUR/USD towards the 0.9650 support. Any more gains could lead the pair towards 0.9600.
Looking at USD/JPY, the pair rallied further and tested the 152.00 resistance zone, where the bears emerged. The pair declined heavily and dropped over 250 pips.
Economic Releases
- Germany’s Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 47.2, versus 47.8 previous.
- Germany’s Services PMI for Oct 2022 (Preliminary) – Forecast 44.8, versus 45.0 previous.
- Euro Zone Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 48.0, versus 48.4 previous.
- Euro Zone Services PMI for Oct 2022 (Preliminary) – Forecast 48.2, versus 48.8 previous.
- UK Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 48.0, versus 48.4 previous.
- UK Services PMI for Oct 2022 (Preliminary) – Forecast 49.0, versus 50.0 previous.
- US Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 51.2, versus 52.0 previous.
- US Services PMI for Oct 2022 (Preliminary) – Forecast 49.2, versus 49.3 previous.
