EUR/USD Pullback before 1.10!

15 בנוב׳ 2023

The EUR/USD pair holds above 1.0850 but faces resistance below the 1.0900 threshold during the early European trading hours on Wednesday. Weaker-than-expected US inflation data exerts some bearish pressure on the US Dollar (USD) and supports the EUR/USD pair. That being said, the markets anticipate that the Federal Reserve (Fed) has concluded the hiking cycle this year and expects rate cuts in the early second quarter of 2024. The region between 1.0895 and 1.0900 represents an immediate resistance level for the pair. Further north, the next barrier is at 1.0933 (high of August 22). Additional resistance is observed at 1.0947 (high of August 30), with the final destination at 1.102 (a round figure and high of August 11). On the flip side, the initial support level is near the psychological round figure of 1.0800. The next contention level will emerge at the November high of 1.0756, followed by 1.0713 and 1.0672. The market overnight experienced a false breakout of the swing high, which could lead the price to react during the London session, initially gaining liquidity above the Asia high and subsequently pulling back towards the 38% Fibonacci level. Let me know what you think, comment, and leave a like. Happy trading to everyone from Nicola, the CEO of Forex48 Trading Academy.