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EUR/USD Will Likely Gain higher if it breaks More Resistance, EUR Employment Report Next

January 9, 2023 Financial Market, Technical Analysis

Key Take-Aways

  • The upside break above the 1.0700 resistance is what EUR/USD is aiming for.
  • On the 4-hours chart, a connecting bearish trend line is developing with resistance close to 1.0710.
  • The GBP/USD currency pair wants to rise again over the 1.2200 mark.
  • In November 2022, the unemployment rate in the Euro Zone may stay at 6.5%.

Technical Analysis of EUR/USD

In relation to the US Dollar, the Euro made a lower correction beneath the 1.0550 mark. The EUR/USD pair recently begun a new climb after testing the 1.0480 area.

On the 4-hour chart, the pair had a low of 1.0481 before moving higher. The resistance levels of 1.0550 and 1.0600 were moved above. The downward movement from the 1.0713 swing high to 1.0481 low was retraced by 50% using the Fibonacci ratio, and the bulls were able to push the pair above this level.

The price of the pair has risen over the 1.0620 resistance level, the red 4-hour 100 simple moving average, and the 200 simple moving average.

An early resistance on the upswing is located close to the 1.0700 level. On the same chart, a connecting bearish trend line is also developing, with resistance situated close to 1.0710. The area around 1.0720 might serve as the next significant resistance.

A clear break over the resistance level of 1.0720 could signal the beginning of a continuous rise. In the aforementioned scenario, the EUR/USD pair might begin to steadily rise. The pair might increase towards the 1.0800 level in the scenario described.

A significant support level at 1.0620 and the 100 simple moving average are present on the downside. Near the 1.0550 level, the major support is currently forming. The pair may move lower if the downside breaks through the 1.0550 area.

Near the 1.0500 mark, there is the next significant support. Any more losses might pave the way for a move in the direction of the 1.0450 support region.

In terms of GBP/USD, the pair is steadily gaining, and there is a potential that it may go above the 1.2200 resistance level in the ensuing trading sessions.

Economic News To Trade Today

  • Forecasted Euro Zone unemployment rate for November 2022 is 6.5%, up from the previous 6.5%.
  • Forecast for Euro Zone Sentix Investor Confidence in January 2022: -11.1 vs. -21 previously.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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