General analysis EURUSD for 22.10.2021
Current dynamics
Yesterday EURUSD was trading in different directions within a narrow price range. In the second half of Thursday, the U.S. dollar strengthened against major currencies after the publication of strong macroeconomic statistics on employment and the housing market.
According to the Labor Department, the number of initial jobless claims fell from 296 K to 290 K during the week, while the forecast was 300K. The total number of individuals receiving benefits also declined, indicating a positive trend in the U.S. labor market. At the same time, the slowdown in the manufacturing activity index from the Philadelphia Fed in October had briefly limited the recovery of the US currency. However, a significant increase in the volume of sales on the secondary housing market in the U.S. allowed the trading instrument to maintain a positive trend at the end of the session.
Today the pair has strengthened, thanks to the growth of the business activity index in the Eurozone and in Germany in particular. This index has caused concerns among investors due to falling profitability in the industrial sector, amid rising energy prices.
Federal Reserve Chairman Jerome Powell is scheduled to speak today at 17:00 (GMT+2), which may have a significant impact on the market dynamics.
Support and resistance levels
On the 4h chart the instrument is testing the Bollinger Band moving average, which is the nearest resistance level. The indicator has corrected sideways and the price range has contracted, indicating that the instrument is correcting. MACD histogram is in the positive zone, holding a weak buy signal. Stochastic has left the oversold area and maintains a buy signal.
- Support levels: 1.1560, 1.1595, 1.1620.
- Resistance levels: 1.1640, 1.1665, 1.1690, 1.1725, 1.1755.
Trading scenarios
- It is possible to open short positions below the level of 1.1620 with a target of 1.1565 and a stop-loss at the level of 1.1665. Implementation period: 1-3 days.
- Long positions should be opened above the level of 1.1665 with a target of 1.1715 and a stop-loss at the level of 1.1615. Implementation period: 1-3 days.