feedback
The FxPro Analyst Team

Forex: EURUSD and EURGBP Test Levels

This morning we saw the release of the Eurozone Q3 GDP (QoQ and YoY), the Eurozone CPI and Core CPI figures for October (YoY), all in line with expectations. Also the US PCE, Core PCE, Personal Spending and Personal Income (Sep) figures, in line with expectations in general.

EURUSD has been oscillating in a downtrend channel since the beginning of October, due to the strengthening of the dollar and the ECB statement of potential extended stimulus measures.

Yet the price has held after testing the long term major support line at 1.0850. The range between 1.0850 and 1.0800 is the long term major support zone.

Last Friday evening the dollar weakened due to Clinton’s email scandal, EURUSD rallied and broke the near term resistance level at 1.0900 and the downtrend line resistance. This morning it further tested the next significant resistance level at 1.1000 yet retraced.

The 4 hourly Stochastic Oscillator and the RSI indicator are both heading downwards from above, indicating the bullish momentum is waning.

The current price is testing the newly formed support line at 1.0950. If it is confirmed broken, then will likely test the newly formed near term major support line at 1.0900.

The resistance level is at 1.1000, followed by 1.1030 and 1.1060.
The support line is at 1.0950, followed by 1.0900 and 1.0850.

eurusd-h4

EURGBP has held above the downside short term uptrend line support, since the retracement on 18th October, where another support line at 0.8900 converges. This is providing a strong support.

Yet the current price is trading around the near term major resistance level at 0.9000. In addition, the price is nearing the long term major resistance zone, between 0.9060 – 0.9150. The bullish momentum is likely to be restrained at this level.

The 4 hourly Stochastic Oscillator is heading downwards from above, indicating a retracement.

The resistance level is at 0.9000, followed by 0.9060, 0.9100 and 0.9150.
The support line is at 0.8950, followed by 0.8900 and 0.8850.

eurgbp-d1

eurgbp-h4-

No rating results yet