The EUR/USD pair moves within a corrective trend around 1.0250.
The positive dynamics are mainly due to the depreciation of the US dollar, as the outlook for the euro remains extremely negative. Yesterday, the European Central Bank (ECB) published a traditional monthly bulletin containing economic forecasts for the near future. According to experts, the decline in the gross domestic product (GDP) and other key indicators will continue until the end of this year, as the risks of a slowdown in the global economy outweigh all positive signals. Analysts cite the deepening energy crisis and disruptions in supply chains as major concerns, which could be confirmed by today's German consumer price statistics for October, with inflation forecast to rise to 10.4% from 10.0% earlier, and the harmonized index to 11.6% from 10.9% previously.
Investors are focusing on the preliminary results of the national Congress elections. The Republican Party will most likely succeed in gaining control of the House of Representatives, but power will be divided in two, significantly slowing down the time for making important political and economic decisions. Some analysts have already noted that such an outcome of the vote will contribute to market volatility.
The trading instrument continues its corrective growth on the daily chart and is preparing to exit the local corridor.
Technical indicators reversed and issued a renewed buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram is forming rising bars, rising in the buying zone.
Resistance levels: 1.0275, 1.0495. | Support levels: 1.0120, 0.9876.