Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EURUSD is ready to rise
Information is not investment advice
On the H1 chart of EURUSD, the euro is testing the support level of 1.1004 that was formed on Monday. At the same time, the price has touched the lower band of the Bollinger Band indicator and is showing signs of bouncing upwards. The bullish reversal is confirmed by the RSI and the Stochastic Indicator. The RSI stepped into the oversold zone and crossed the 30% bottom-up. The Stochastic Indicator’s fast line crossed the slow one in the same manner within the oversold zone. That presents a good opportunity to open longs. The resistance levels for this scenario may be placed at 1.1022 and 1.1030. The bearish direction may have an additional support level at 1.0988.
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.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.