The Euro finds sellers at 0.8775 and remains moving sideways. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The Euro finds sellers at 0.8775 and remains moving sideways.
• UK economy contracts less than expected in Q3.
• EURGBP: Still keeping the three-month forecast at 0.89 – Rabobank.

The pair currently trades last at 0.8742.

The previous day high was 0.8821 while the previous day low was 0.87. The daily 38.2% Fib levels comes at 0.8746, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8775, expected to provide resistance.

The Euro recovery attempt from Thursday’s lows at 0.8695 has been capped at 0.8775 in Friday’s early US session before retreating to 0.8740. From a wider perspective, the pair remains wavering. Between 0.8687, practically unchanged in the weekly chart

According to preliminary estimations, UK Gross Domestic Product contracted by 0.2% in the third quarter, well above the -0.5% market consensus after having grown 0.2% in the previous quarter. Year on year, the UK economy slowed down to 2.4% from 4.4%, also improving expectations of a 2.1% reading.

These figures confirm the forecasts of the Bank of England anticipating a is entering a lengthy recession ahead. The market, however, has shown a certain relief which has reflected in a moderate appreciation of the British Pound.

Looking forward, analysts at Rabobank maintain a positive outlook on the pair: Over the coming weeks, we would expect GBP investors to be focused on the impact of the November 17 Autumn Statement, the ability of PM Sunak to hold the Tory party together, the outlook for UK growth/recession and BoE interest rates (…) We would expect issues surrounding the protocol only to have a clear impact on GBP as any related deadlines approach. We are yet to be persuaded to alter our bearish view on the pound and maintain a 3-month forecast of EUR/GBP 0.89.”

Technical Levels: Supports and Resistances

EURUSD currently trading at 0.8742 at the time of writing. Pair opened at 0.8704 and is trading with a change of 0.44 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8691, 50 SMA 0.8725, 100 SMA @ 0.8606 and 200 SMA @ 0.8518.

The previous day high was 0.8821 while the previous day low was 0.87. The daily 38.2% Fib levels comes at 0.8746, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8775, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8663, 0.8621, 0.8542
• Pivot resistance is noted at 0.8784, 0.8863, 0.8905

[/s2If]
Join Our Telegram Group