General analysis EURUSD for 23.11.2021

Current dynamics

EURUSD slowed down on Tuesday amid the positive statistics publication on business activity in Eurozone. Growth of business activity index in the EU and Germany was a surprise for the market participants. However it should be noted that the market reaction was restrained, as Germany, following Austria and the Netherlands, may tighten the measures of social distancing in the near future. In addition, long-term pressure on the single European currency is provided by the "dovish" position of the ECB, as well as the energy crisis in Europe.

Yesterday the US currency strengthened after the US President Joe Biden formally endorsed Jerome Powell to head the Fed. For the markets this means that the Fed's monetary policy will remain moderately aggressive. Following Clarida and Waller, Bank of Atlanta Governor Bostick supported an acceleration of QE cuts.

Today at 16:45 (GMT+2), the U.S. will release its business activity statistics.

Support and resistance levels

On the 4-hour chart there is a correction of the uptrend. The instrument trades at the bottom of the Bollinger Bands. The indicator is directed downward and the price range has widened, indicating a continuation of the downtrend. MACD histogram is in the negative zone, holding a strong sell signal. Stochastic has left the oversold area, forming a short-term sell signal.

• Support levels: 1.1130, 1.1190, 1.1210, 1250.
• Resistance levels: 1.1290, 1.1380, 1.1435, 1.1485, 1.1550.

Trading scenarios

• Short positions can be opened at the current price with a target of 1.1190 and a stop-loss at 1.1305. Implementation period: 1-2 days.
• Long positions should be opened above the level of 1.1290 with a target of 1.1365 and a stop-loss at the level of 1.1260. Implementation period: 1-3 days.