EUR/USD Bullish outlook target of 1.07!

14 ott 2023

In the final part of the American session, EUR/USD dropped to 1.0500 due to negative market sentiment, resulting in weekly losses despite a previous bullish movement. The pair fell below 1.0570, a significant level represented by the 100-period SMA and the 23.6% Fibonacci retracement. The RSI on the 4-hour chart dropped below 50, signaling a short-term bearish outlook. If EUR/USD manages to establish 1.0570 as a support level, it could gain momentum and target 1.0600 and 1.0640-1.0650. The main downside support levels are at 1.0500 and 1.0450 if 1.0570 is held. EUR/USD stabilized around 1.0550 on Friday after significant losses on Thursday, with technical analysis indicating a gradual decline in bullish momentum, although buyers might step in if 1.0570 becomes a support. The recent strength of the US dollar (USD) caused the decline of EUR/USD during the Thursday American session following the latest inflation data. The Consumer Price Index (CPI) in the United States increased by 3.7% on a yearly basis in September, with the annual core CPI slightly decreasing to 4.1% compared to the expected 4.3%. Nathan Janzen, Deputy Chief Economist at the Royal Bank of Canada, highlighted the increase in the Fed's "supercore" (core services excluding the rent component) and the annualized three-month growth rate in specific details of the report. US stock index futures showed a modest increase on Friday at the beginning of the day. In the absence of significant macroeconomic data releases, risk perception could influence the assessment of the USD and, consequently, affect the movement of EUR/USD before the weekend. A positive opening on Wall Street could reduce demand for the USD, while EUR/USD could decline if investors anticipate a further 25 basis points increase in Federal Reserve interest rates by the end of the year.

Now the price at the level of 1.0588 has retraced to 0.705 Fibonacci, and I expect a bullish impulse, considering the strong demand zone at H4. I will evaluate any structural changes at M15 to look for a bullish entry with a target of 1.07. Let me know what you think, comment, and leave a like. Happy trading and have a great weekend, everyone. Greetings from Nicola, the CEO of Forex48 Trading Academy.