Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD: reading technical levels
Information is not investment advice
All markets experience substantial volatility, the most popular currency pair is no exception. EUR/USD reversed sharply down this week after almost reaching the 1.15 mark.
As you can see from the W1 chart, EUR/USD ran into resistance of the 100- and 200-week MAs at 1.1340. Notice that the 100-week MA went below the 200 line – that’s a bearish development. Currently the pair’s testing the 50-week Moving Average in the 1.1120 zone.
On the D1, the price is getting close to the horizontal daily MAs. These lines may provide some support. If the euro manages to stay above 1.1100, its attempts to recover will meet resistance at 1.1220 ahead of 1.1300. At the same time, Fibonacci tool shows that the price has retraced more than 50% of the February-March advance to the downside. The next Fibonacci targets to watch on the downside lie at 1.1050 (61.8% Fibo) and 1.0930 (78.6%).
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.