Technical analysis of EUR/USD for November 04, 2022

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Overview :

The US dollar's strong gains against the Euro have continued today ahead of the sturdy news. The common currency reached a high of more than three days earlier this morning. This technical analysis of EUR/USD looks at the one-hour chart. The highest price that EUR/USD reached for that period was 0.9870 (last bullish wave - top).

The lowest price that the EUR/USD pair reached during that period was 0.9845 (right now). The bias remains bearish in the nearest term testing 0.9800 or lower. Immediate support is seen around 0.9800. A clear break below that area could lead price to the neutral zone in the nearest term.

Price will test 0.9817, because in general, we remain bearish on Nov. 4th, 2022. Yesterday, the market moved from its bottom at 0.9817 and continued to drop towards the top of 0.9713. Today, on the one-hour chart, the current fall will remain within a framework of correction. But the trend rebounded to close around the zone of 0.9796.

However, if the pair fails to pass through the level of 0.9817 (first resistance), the market will indicate a bearish opportunity below the strong resistance level of 0.9817 (the level of 0.9817 coincides with tha ratio of 23.6% Fibonacci retracement).

The EUR/USD pair settled below 0.9817 and is testing the support level at 0.9731. RSI and Moving averages continue to give a very strong sell signal with all of the 50 and 100 EMAs successively above slower lines and below the price. The 50 EMA has extended further below the 50 this week.

Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength below the moving average (100) and (50). An alternative scenario is a final consolidation below MA 100 H1, followed by growth around the area of 0.9905. The one-hour chart favors a downward extension, as the pair broke below its 50 and 100 EMAs, both gaining downward traction.

Support from MAs comes initially from the value zone between the 50 and 100 EMAs. Industriously, Euro Is Losing ground against U.S. Dollar around +135 pips. Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 0.9817 with the first target at 0.9731 so as to test the double bottom.

If the trend breaks the double bottom level of 0.9731, the pair is likely to move downwards continuing the development of a bearish trend to the level of 0.9700 in order to test the weekly support 2. According to the previous events the price is expected to remain between 0.9817 and 0.9700 levels. The movement is likely to resume to the point 0.9650.

The descending movement is likely to begin from the level 0.9731 with 0.9700 and 0.9650 seen as new targets in coing hours. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 0.9903.

Conclusion:

Downtrend scenario:

On the downside, the 0.9817 level represents resistance. The next major resistance is located near the 0.9903, which the price may drift below towards the 0.9800 resistance region. The breakdown of 0.9800 will allow the pair to go further down to the prices of 0.9730, 0.9700 and 0.9650.


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