empty
 
 

Forex Analysis & Reviews: EUR/USD: technical analysis on December 1, 2022
time 01.12.2022 02:10 PM
time Relevance up to, 02.12.2022 12:32 PM

This image is no longer relevant

Hello, dear traders! On Wednesday, EUR/USD dropped to 1.0315, rebounded, and went up to the 200.0% Fibonacci level of 1.0430. In case of a pullback, the pair will reverse and head toward 1.0315. However, if the quote closes above 1.0430, growth may extend to the 161.8% retracement level of 1.0574. Yesterday, the eurozone saw the release of inflation data for November. The reading decreased to 10% from 10.6%, which was enough to trigger a sell-off in the euro. A slowdown in inflation means that the ECB may start reducing the pace of tightening in December. In fact, some ECB officials back a 0.50% increase in interest rates at the coming meeting. Yet, a sell-off did not take place.

In the US, the ADP report logged a fall in new jobs to 127,000 in November from 239,000 a month earlier. Meanwhile, the GDP report revealed that the American economy was expanding faster than expected. It took traders an hour and a half to digest the results and begin to sell the instrument.

A sell-off in the dollar started after the speech from Fed Chair Powell. The pair went up, down, and up again within one day. In fact, Powell's statement did not contain new information that could push the dollar down by 160 pips.

This image is no longer relevant

In the 4-hour time frame, the pair settled above the 127.2% retracement level of 1.0173. At this point in time, the quote is trying to return to the mark. The uptrend will continue to the 100.0% retracement level of 1.0638 in case of a rebound. At the same time, if the price consolidates below 1.0173, the pair may head toward the 161.8% Fibonacci level of 0.9581. The CCI indicator shows an impending divergence, meaning a bearish reversal is likely.

Commitments of Traders:

This image is no longer relevant

This week, the new COT report came on Wednesday. During the reporting week, speculators opened 229 long positions and closed 10,217 short ones, illustrating an increase in bullish sentiment. Speculators are currently holding 239,000 long positions and 116,000 short ones. The euro is now bullish, which is in line with the COT report, with the number of longs twice exceeding that of shorts. Over the past several weeks, the currency has had more growth prospects. However, traders are not ready to give up USD purchases. In addition, there is a descending corridor on the 4-hour chart. The price actually managed to close above it. Therefore, we may see a continuation of the uptrend

Macroeconomic calendar:

Eurozone: Manufacturing PMI (11-00 UTC); Unemployment rate (12-00 UTC).

United States: Initial Jobless Claims (15-30 UTC); ISM Manufacturing PMI (17-00 UTC).

On December 1, the macroeconomic calendar contains important releases both in the eurozone and the United States. Traders should pay closer attention to data on business activity.

Outlook for EUR/USD:

It will become possible to open short positions after a pullback from 1.0430 on the H1 chart, with a target at 1.0315. Long positions could be considered when the price closes above 1.0430 on the H1 chart, with a target at 1.0574.

Samir Klishi,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $10000 more!
    In January we raffle $10000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Technical analysis of EUR/USD for January 31, 2023

The expected trend for today: Bullish. The EUR/USD pair rallied upwards strongly yesterday to breach the bearish channel's resistance and settles above it, opening the way to turn

Mourad El Keddani 20:44 2023-01-31 UTC+2

USD/CHF: further growth invalidated

The USD/CHF pair is dropping like a rock at the time of writing. It's located at 0.9176 far below 0.9288 today's high. You can see that it has failed

Ralph Shedler 19:07 2023-01-31 UTC+2

January 31, 2023 : EUR/USD daily technical review and trading opportunities.

The market has remained under buying pressure until a plateau level occurred around the key-zone around 1.0800-1.0850. In the mean time, any downside movement towards 1.0300 should be watched

Mohamed Samy 18:02 2023-01-31 UTC+2

January 31, 2023 : EUR/USD Intraday technical analysis and trading plan.

Price action around the key-level of (1.0550-1.0600) was quite bullish. That's why, further bullish continuation towards 1.0800 was demonstrated. Moreover, more bullish advancement towards the nearest supply zone around 1.1150-1.1200

Mohamed Samy 18:00 2023-01-31 UTC+2

January 31, 2023 : GBP/USD Intraday technical analysis and significant key-levels.

Price action around 1.2340 was being watched for bearish rejection and a short-term SELL Entry. It was running in profits until the current bullish bounce has been expressed. Please take

Mohamed Samy 17:59 2023-01-31 UTC+2

Trading Signal for GBP/USD for January 31, 2023: sell in case of pullback at 1.2374 (21 SMA - bearish channel)

According to the 4-hour chart, we can see that the British pound is trading within a downtrend channel formed since January 13. In case there is a pullback towards 1.2374

Dimitrios Zappas 15:05 2023-01-31 UTC+2

Bulls try to reverse trend in the Dollar index.

The Dollar index is trading around 102.25 after making a low around 101.47 4 sessions ago. Price has stopped the decline at the 50% Fibonacci retracement level. In previous posts

Alexandros Yfantis 14:50 2023-01-31 UTC+2

Analysis of EUR/USD on January 31. Bullish trend remains strong

Hi everyone! The EUR.USD pair rose higher moving in the sideways channel. Later, it dropped to the lower border of the channel. However, it managed to rebound to 1.0900

Samir Klishi 12:05 2023-01-31 UTC+2

Technical Analysis of Intraday Price Movement of EUR/USD Main Currency Pairs, Tuesday January 31, 2023

Currently on the 4-hour chart the main EUR/USD currency pair seems to be trying to break below the 1.0838 level which happens to be the Equal Low area

Arief Makmur 11:35 2023-01-31 UTC+2

Analysis of Intraday Price Movement of USD/JPY Main Currency Pairs, Tuesday January 31, 2023

On the 4-hour chart, the main USD/JPY currency pair, although seen moving downward in the channel, which indicates that the bias is in a bearish condition. It appears that hidden

Arief Makmur 11:35 2023-01-31 UTC+2
Can't speak right now?
Ask your question in the chat.