Friday , August 19 2022

EUR / USD Increases Euro Concerns


Forex Talking Points:

– The stock markets are retreating slightly after the strong peaks in the first week of November. It came with a retreat of the previous theme US Dollar strength entering trend line support this week on Wednesday. As the US dollar (DXY) reappears around the European markets as it revolves around the foreign exchange markets, could a new decline be seen in global equities?

– Next week, the revised budget brings the exit date from Italy, and at this point both sides are ready to give. While the European Commission continues to argue that Italy's growth forecasts are too high to justify the proposed deficits, Italy claims that the European Commission is using a lower optimal forecasting model. Next Tuesday, November 13thpearlthe revised budget is expected to come from Italy, but will it be conducive to Brussels's demands?

– Forecasts for various currencies like DailyFX United states dollar or Euro available DailyFX Trading Manuals page. If you want to improve your trading approach, log out Characteristics of Successful Traders. And if you are looking for entry primer to the Forex market, check it. New FX Guide.

Would you like to see how retail investors are currently trading US dollars? Check out ours IG Customer Sensitivity Indicator.

Review of Risk Trading in Europe Industries Returning to Basic

Her was a promising November so farFor the most part, this became an alarming issue in October, as risk trading has driven the world around. All of the Dow, Nasdaq 100 and S & P 500 were all at an all-time high in the first few days of Q4, while the rest of last month were subject to changing pressures in the global risk markets. This was accompanied by a supply of US dollar strength behind risk avoidance themes. These drivers had recently completed mid-term elections, rising rates from the US, a still unsolved tariff scenario, a number of questions about Brexit, and perhaps most importantly a potential debt stand. Closed between Italy and the European Commission.

DJIA Four-Hour Price Graph: October Pain Arrives in November – But Are Buyers Keeping the Line?

dow jones djia four hour price table

Graphics prepared by James Stanley

Some of these items calmed down, recovery credits linked to each other within the month. Mid-term maturities resulted in a fairly market-friendly (and at least jurisdiction) and yesterday spoke out in anticipation of Brexit's progression of optimistic Donald Tusk.

EUR / USD Euro Concerns Raise Annual Low-Risk Risks Back to Spot Light

It's still extraordinary, and The potential concern for stock bulls is the ongoing scenario. Between the European Commission and the Italian government. Next week, November 13pearlthe historical markings of the revised budget to Brussels. This week, discouraging developments were seen on this front. While the European Commission says the projections Italy has grown are very high, Italy claims that the EC uses an ın inadequate and partial dü analysis of the economy in projections. This is important because there are the same growth projections that will help Italy to make spending estimates for the next two years, and there is a difference between Brussels and Rome.

EUR / USD Four-Hour Price Graph: Vendors return to 1.1500 to Renew November

eurusd eur / usd four hour price table

Chart prepared by James Stanley

Earlier today, Italian Economy Minister Giovanni Tria said Brussels's budget cuts demanded the Italian economy to commit suicide. he said. And yesterday, the IMF warned that Italy is vulnerable to rising rates, and that countries with "weaker macroeconomic fundamentals and limited policy buffers" may face difficulties because "uncertainty about future uncertainty" and "transmission against future stress." In this scenario, we see that we are not close to the solution and the Italian bonds continue to rise as the highest levels in a week are behind these developments.

In European currency price movement In November, the US market began to rise in November trade, where support was partially supported; but this power theme was sold with the support of yesterday. These prices can be a difficult market for working before the weekend due to the low levels of prices. The price of 1.1300 increased twice its downward trend over the past few months: first in mid-August and then in late October. A third test may not be able to hold down abortions, but the lack of nearby resistance makes the entry a little less attractive, given the risk-reward potential up to 1.1300.

EUR / USD Eight-Hour Price Graph: 1.1500 Number of Falls: 1.1300 Support Nears

eurusd eur / usd eight hour price table

Chart prepared by James Stanley

This could open the door for separation strategies for the newest lowest pressures after the opening week. Or alternatively, I can retreat to some of the short-term resistance, withdraw an area that would allow adequate risk management for the approach to fall, and summarize two possible areas in the resistance area in the graph below; Around 1.1395 and then 1.1430.

EUR / USD Two-Hour Price Graph

eurusd eur / usd two hour price table

Chart prepared by James Stanley

GBP / USD: Brexit Optimism Brings Support for British Pounds

British Pound spent a strong month in November The rest of the month's bearish trend as currency. In the first week of the new month, prices recalled the downtrend of last month's 88.6% and found some resistance in the 1.3174 region. The past two days have returned to an important support zone that I looked at this week on Wednesday.

GBP / USD Two Hours Price Chart: 1.3000 Support

gbpusd gbp / usd two hour price table

Chart prepared by James Stanley

At this stage, prices generated a very respectable support around 1.3000. psychological levelAnd this could keep the door open for the upward approach as it moves to next week. It is noteworthy that the Brexit dynamics seem quite optimistic at this point; If the last two years of the post-brexit analysis have taught us something, then optimism can be transformed rapidly with the breakdown of politics. Hence, this will likely remain a dire situation that investors will want to continue to be cautious with.

GBP / USD Daily Price Chart: A Four-Month Price Transaction

gbpusd gbp / usd daily price table

Chart prepared by James Stanley

US Dollar Re-Approaches 97.00 – Third Time Charm?

The US dollar acted in line with these risk trends, which showed its strength in October and withdrew in November when it began to show intentionally. As I looked on Wednesday, Prices in Greenback have retreated to an important trend line combining the lowest levels in September and OctoberAnd this helped bring back the power of money with DXY and now developed a quick approach at 97.00.

US Dollar Four-Hour Price Graph: Trend-Line Bounce, Extending with FOMC

us dollar four hour price table

Chart prepared by James Stanley

So far this year there are a series of dramas around 97.00: the August run has fallen far below this level, and the October move broke the October move, even in a day when the sellers arrived.

Will buyers succeed in a third attempt? This will somehow relate to the dynamics in the EUR / USD. and whether the pair can pass under the 1.1300 processor. Next week, if there is risk aversion, this level of 97.00 is revealed and we will probably see a third test.

US Dollar Daily Price List: Third Time for DXY at 97?

US dollar usd daily price table

Chart prepared by James Stanley

Read more:

Looking for long-term analysis in US Dollars? our DailyFX Tips for Q4 We have a division for each major currency and we offer plenty of resources. United states dollar-pairs like EUR / USD, GBP / USD, USD / JPY, AUD / USD. Investors also with close-term positioning IG Customer Sensitivity Indicator.

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— Written by James Stanley, Strategy expert For

Contact and follow James Twitter & # 39; from: @jstanleyfx

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