Solid News

The European Currency Retreated from its Local Highs

11/16/2022 12:04 PM

The European currency shows mixed trading dynamics, consolidating near 1.0350. The day before, the EUR/USD pair showed quite active growth and even managed to update local highs from July 1; however, the instrument failed to consolidate at new levels.

The positions of the US currency strengthened noticeably during the evening session in response to reports of the fall of two missiles in Poland. So far, there is still no complete information; however, the country has announced that it is increasing the combat readiness of a number of military units and special services, and the leaders of the G7 and the North Atlantic Alliance issued a joint statement in which they confirmed their full support for the ongoing investigation by Poland. Traders fear that this could serve as an additional escalation of the Russian-Ukrainian military conflict.

Meanwhile, investors are taking a lead from yesterday's macroeconomic statistics. Gross Domestic Product (GDP) of the eurozone in the third quarter (according to the reassessment) did not change and amounted to 0.2% in quarterly terms and 2.1% in annual terms. At the same time, the Employment Change in the region slowed down from 0.4% to 0.2% in the third quarter, which was slightly worse than market expectations at 0.3%. In annual terms, the indicator fell from 2.7% to 1.7%, also falling below the projected 1.8%.

In turn, data from a study by the Center for European Economic Research (ZEW) turned out to be positive: eurozone's Economic Sentiment index rose from -59.7 points to -38.7 points in November, while analysts expected a fall to -67.0 points, and the German Economic Sentiment index strengthened from -59.2 points to -36.7 points, which also turned out to be better than forecasts at the level of -50.0 points.

Bollinger Bands on the daily chart show a steady increase. The price range is expanding but it fails to conform to the "bullish" activity at the moment. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic, being at its highs, maintains its downtrend, signaling in favor of the development of a correctional decline in the near future.

Resistance levels: 1.0400, 1.0450, 1.0500, 1.0550. | Support levels: 1.0350, 1.0300, 1.0253, 1.0200.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2023