Time Zone: GMT +2
Time Frame: 4 Hours (H4)
Fundamental Analysis:
The EURUSD pair represents the exchange rate between the Euro (EUR) and the US Dollar (USD). Factors affecting this currency pair include key economic indicators from the Eurozone and the United States, such as interest rate decisions by the European Central Bank and the Federal Reserve, inflation rates, unemployment data, and manufacturing output. Additionally, geopolitical events, trade relations, and market sentiment towards global economic health significantly impact EURUSD. The pair is also influenced by the monetary policies of both central banks, which are currently navigating the post-pandemic economic recovery.
Price Action:
The H4 chart for EURUSD shows a series of higher lows along with higher highs, indicating an uptrend. The presence of a descending trendline that has been breached suggests a potential reversal of the previous bearish sentiment to a bullish outlook.
Key Technical Indicators:
RSI (Relative Strength Index): The RSI is near the 50 level, indicating a balance between buying and selling pressures. It does not show an overbought or oversold market, which suggests that there is room for the trend to continue either way.
Volumes: The volume is not visible in the provided chart, so we cannot assess its impact on current price action.
MACD (Moving Average Convergence Divergence): The MACD indicator is not included in the provided chart, so its analysis is not applicable here.
Support and Resistance:
Resistance: The recent swing high near the 1.07525 level may act as a resistance level.
Support: The Fibonacci retracement levels, particularly around the 38.2% level at 1.06259, could serve as support, as they often coincide with key levels of buying interest.
Conclusion and Consideration:
The EURUSD pair on the H4 timeframe suggests an uptrend as indicated by the pattern of higher highs and higher lows. The breach of the descending trendline may also signal a bullish momentum. However, traders should monitor key fundamental factors from both the Eurozone and the United States, as they could greatly affect the direction of the pair. The RSI suggests a neutral market, providing no clear overbought or oversold signals. Traders may consider opportunities to enter long positions on pullbacks to significant Fibonacci levels, with stop losses set below key support levels to manage risk. It is also prudent to watch for price action near the recent swing high, as it may serve as a short-term resistance level.
Disclaimer: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.
November 13, 2023
