Technical Analysis of EUR/USD Trading on November 22nd
On Friday (November 22), EUR/USD traded around 1.0460 in the European session, with the US dollar index hitting a new high on fundamentals. At the same time, the number of initial jobless claims in the United States decreased, and expectations of a Federal Reserve interest rate cut slowed down, supporting the accelerated strengthening of the US dollar.
The Eurozone is expected to cut interest rates by 25BP in December, which is not conducive to the short-term rise of non US currencies. The euro has already fallen below the box support, and the monthly line has accelerated its decline for two consecutive bearish periods. Waiting for the downward space to open up, we will continue to monitor whether the US dollar index will accelerate its rise within the day.
From a technical perspective, the daily level KDJ of the euro against the US dollar is still in the oversold range, but there is no sign of stabilization. At the same time, the moving average has turned downwards, but the deviation value continues to increase.
At present, the downward trend has not yet emerged, waiting for opportunities to reverse and short sell. The daily level reverse pressure is around 1.0530, with a support of 1.0400 below. If it falls below, the downward trend will accelerate.
(EUR/USD daily chart)
At the 4-hour level, the KDJ indicator continues to decline, and the moving average has turned downwards. There is no sign of the K-line stabilizing and stopping its decline. If the retracement fails to stabilize at 1.0550, the bearish structure will continue.
If the price falls below 1.0400, it will accelerate the downward trend. Before the bearish trend ends, it is not advisable to blindly go long and be cautious of accelerating the downward trend.
EUR/USD 4-hour chart
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