In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for 26th October 2023.
Key Takeaways
- ECB will not raise interest rates: Today the European Central Bank announced its latest interest rate decision. In September, the ECB unexpectedly raised interest rates for the tenth consecutive time. But then it was hinted that this round of interest rate hikes is coming to an end and the ECB may not raise interest rates for the rest of this year. The market will focus on whether the ECB has additional forward guidance.
- Euro depends on USD: Since the European Central Bank will “almost certainly” keep interest rates unchanged, the euro is more likely to be driven by the economy of the US. Tonight, the United States will announce the number of initial jobless claims last week and PCE data for the third quarter.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The fast line of the indicator crossed below the slow line yesterday, suggesting that a bearish trend in the market is coming.
- Price action: The exchange rate showed a bearish price action on Tuesday, and then the candle bar pulled back to the 5-day moving average and fell below Tuesday’s low, suggesting that bears have the upper hand.
- Flag-shaped consolidation structure: The exchange rate has fluctuated upward since October 4, and the overall price has shown a flag-shaped range. Next, we will pay attention to whether price can fall below the range today. If the range is still effectively supported, the market will rebound and rise again. Otherwise, short opportunities will come.
1-hour Chart Analysis
- Stochastic Oscillator: The fast line is about to cross the slow line, suggesting that the exchange rate is about to fall into consolidation in the short term.
- Moving average group: The exchange rate fell below the 200-period moving average. Currently, the 33-period moving average and the 65-period moving average have not yet crossed the 200-period moving average. Theoretically, when the fast line crosses the slow line, the market price may pull back to the short-term moving average group.
Pivot Indicator
- According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 1.05797,
- Bullish Scenario: Bullish sentiment prevails above 1.05797, first target 1.05933, second target 1.06205;
- Bearish Outlook: In a bearish scenario below 1.05797, first target 1.05526, second target 1.05383.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
