EUR/USD is ready for a restart!

2023年10月23日

In the Asian session on Monday, the EUR/USD exchange rate dropped below 1.0600 due to developments in the Middle East, weakening the bullish prospects of the pair. The US dollar gained strength due to higher yields and a decline in stocks. However, there are some positive signals for EUR/USD, with technical indicators showing the potential for further gains if it closes above 1.0640 and possible weakness if it falls below 1.0500.

On the 4-hour chart, the pair appears to have an upward trend, and gains may continue if it remains above 1.0555, with possible support at 1.0530. The main resistance is at 1.0630, and a breakout of this level could lead to further upward movement.

Looking ahead, Germany will release the Producer Price Index (PPI) report, and the European Central Bank (ECB) meeting is expected. In the United States, economic data has shown mixed results, with a decrease in initial unemployment claims but an increase in continuing claims. Federal Reserve Chairman Jerome Powell has suggested keeping interest rates stable in the short term. The expectation is for a rebound to the trendline at the 1.0551 level with subsequent upside towards 1.0622. Of course, I will be looking for an entry on M15/M5 on some liquidity grab, during the Asian session or on a swing low. Let me know what you think, greetings from Nicola, the CEO of Forex48 Trading Academy.