EURUSD, GBPUSD bullish continued and today

Pair EURUSD manages to consolidate in the zone 1.13000-1.13500. We can say that this consolidation is positive, and we will probably see a continuation on the bullish side. Pair has not formed a new lower low so far, and based on that; we expect the bullish trend to continue.

Bullish scenario:

• We need the continuation of positive consolidation that will manage to move the price above 1.13500.
• Our first target is not the previous higher high at 1.13800, and the break above us leads to resistance at 1.14000.
• The next larger resistance zone awaits us at 1.14500, the site of the previous bearish consolidation.

Bearish scenario:

• We need negative consolidation and a fall in EURUSD below 1.13000 and MA20 and MA50 moving averages.
• A further price drop finds the next support in zone 1.12800 on the MA200 moving average.
• We have more support in zone 1.12500, and if it does not last, we will go to the zone of this year’s minimum 1.11850-1.12000.

GBPUSD chart analysis

Pair GBPUSD this morning managed to climb above 1.33000 and MA20 and MA50 moving averages, making gains to the current value of 1.13330. We are now approaching the MA200 moving average in the zone around 1.33500, and here we can expect some resistance that can bring us back to the bearish trend.

Bullish scenario:

• We need a continuation of this positive consolidation and a break above MA200 and 1.33500.
• Below we climb to the next resistance at 1.34000, and then if GBPUSD continues on the bullish side, we come across a potential resistance at 1.34500.
• Our main bullish target is the psychological zone at 1.35000.

Bearish scenario:

• We need a negative consolidation and a withdrawal of the price towards the previous support to 1.33000.
• The break below this support zone brings us down to the next lower support in the lower trend line, around 1,32500.
• If the bearish pressure increases, there is a chance that we will test this year’s minimum again at 1.32000.

Market overview

Eurozone unemployment fell slightly in October, Eurostat data showed on Thursday. The unemployment rate reached 7.3 percent, as expected, and fell from 7.4 percent in September. In the same period last year, the unemployment rate was 8.4 percent. The number of unemployed decreased by 64,000 compared to the previous month. The overall unemployment rate in the EU27 remained stable at 6.7 percent in October.

Eurozone producer prices rose in October due to higher energy prices, Eurostat data showed on Thursday. Producer price inflation quickened more than expected to 21.9 percent in October from 16.1 percent in September. On a monthly basis, producer prices rose 5.4 percent after increasing 2.8 percent a month ago, and the expected rate was 3.5 percent.

The value of retail in Australia rose by 4.9 percent seasonally on a monthly basis in October,  announced on Thursday – reaching 31.130 billion Australian dollars.

That was in line with expectations after a 1.3 percent increase in September. By region, sales were higher in New South Wales, Victoria, Queensland, Western Australia, the Northern Territory, and the Australian Capital Territory; sales fell in South Australia and Tasmania. Year on year, retail sales rose 5.2 percent.

The post EURUSD, GBPUSD bullish continued and today appeared first on FinanceBrokerage.

Share this post