EURUSD Technical Analysis – The US Dollar celebrates the Trump’s victory

I show You how To Make Huge Profits In A Short Time With Cryptos!

Fundamental
Overview

The US Dollar rallied
across the board yesterday as Trump got elected President of the US. The
Republicans won also the Senate and the House giving us a red sweep and therefore
high chances of tax cuts.

This should be the most
bullish scenario for the greenback as it should lead to higher growth and less
rate cuts expectations.

In fact, given the red
sweep and the strong US data we keep on getting, the Fed might start to change
its stance, and we could see a much earlier than expected pause in 2025.

EURUSD Technical
Analysis – Daily Timeframe

On the daily chart, we can
see that EURUSD broke through the key support
zone around the 1.0777 following the Trump’s victory. The sellers are now in
control and the natural target should be the 1.05 handle. The buyers, on the
other hand, will want to see the price rising back above the 1.0777 level to
invalidate the bearish setup and start targeting the 1.09 handle.

EURUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see more clearly the strong resistance zone around the 1.0777 level where we
can also find the major broken trendline.
We can expect the sellers to step in around these levels with a defined risk
above the resistance to position for a drop into the 1.05 handle. The buyers,
on the other hand, will look for a break higher to position for a rally into the
1.09 handle.

EURUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that we have a minor counter-trendline now defining the current pullback.
The buyers will likely keep on leaning on it to target the break above the resistance,
while the sellers will look for a break lower to increase the bearish bets into
new lows. The red lines define the average daily range for today.

Upcoming
Catalysts

Today we have the US Jobless Claims and the FOMC Policy Decision. Tomorrow,
we conclude the week with the University of Michigan Consumer Sentiment report.

See the video below

This article was written by Giuseppe Dellamotta at www.forexlive.com.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *