ACT Markets > Blog > Forex > Technical Analysis > EUR/USD Will Likely Recover Gains in Near Term, USD/JPY Holds Strong

EUR/USD Will Likely Recover Gains in Near Term, USD/JPY Holds Strong

October 24, 2022 Financial Market, Technical Analysis

Key Take-Aways

  • Above the 0.9850 resistance, the EUR/USD is correcting upward.
  • On the 4-hours chart, it broke over a significant negative trend line with resistance around 0.9835.
  • Immediately following a challenge of the 152.00 resistance level, USD/JPY sharply fell.
  • If GBP/USD overcomes the 1.1400 resistance, it might pick up speed.

Technical Analysis of EUR/USD

In relation to the US Dollar, the euro remained strongly bid above the 0.9700 level. The EUR/USD pair began to recover and was able to move past the 0.9780 barrier.

The pair closed above the 0.9800 level, the 100 simple moving average (4-hour red) and the 200 simple moving average on the 4-hour chart (green, 4-hours).

On the same chart, there was also a break over a significant negative trend line with resistance at 0.9835. The pair even passed through the 50% Fib retracement level of the decline from the 0.9631 low to the 0.9999 swing high.

It made room for more gains, and the price of the pair may now advance in the direction of 0.9920. It is close to the 76.4% Fib retracement level of the decline from the 0.9631 low to the 0.9999 swing high.

The area near 1.0000 can serve as the next significant upward resistance. Any additional gains might accelerate a move in the direction of the 1.0080 level. The pair may challenge the 0.9750 support if there is a downward correction.

The area around 0.9720 is the next significant support. The 0.9650 level may be approached by EUR/USD if the fall breaks below the 0.9720 support. Any additional advances might push the pair closer to 0.9600.

Regarding USD/JPY, the pair increased its gains and tested the 152.00 resistance level, which is where the bears materialized. The couple saw a steep downturn and lost more than 250 pip.

Economic News To Trade Today

  • Euro Zone Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 48.0, versus 48.4 previous.
  • Euro Zone Services PMI for Oct 2022 (Preliminary) – Forecast 48.2, versus 48.8 previous.
  • Forecast 48.2 for the Euro Zone Services PMI for October 2022, down from the previous reading of 48.8.
  • UK Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 48.0, versus 48.4 previous.
  • UK Services PMI for Oct 2022 (Preliminary) – Forecast 49.0, versus 50.0 previous.
  • US Manufacturing PMI for Oct 2022 (Preliminary) – Forecast 51.2, versus 52.0 previous.
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.

Related articles