In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for 2nd February 2024.
Key Takeaways
- Banking crises reemerge: Recently, the New York Community Bank released a worrying earnings report with surprising losses. The turmoil in the commercial real estate industry caused the bank to significantly cut dividends and increase loan loss reserves. Its stock price plummeted by 38%. This has offset waning expectations for rate cuts, thus spurring a shift of risk appetite in the market.
- Euro Zone Economy: Euro Zone latest data shows stabilized growth for Q4 of 2023, avoiding economic recession risk with a “slender advantage”.
- However, an overview points towards delayed rate cuts, confounding market expectation.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator shows bullish signal, suggesting short-term upside bias. However, it is worth noting to be vigilant of a sudden change in direction as the signal is formed prior to oversold region.
- Moving average range: The green 240-day moving average prevents the pair from falling further, while the blue 17-day moving average suppresses its upside, implying that the pair may continue to retest in a small price range.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator beginss to form bearish signal in the overbought region, suggesting possible fallback from its high level. We advise to refrain from entering the market as of writing.
- Horizontal resistance: The pair extends its depreciation after being rejected near 1.0885 last month. With the recent price action began to reapproach this similar level, we may expect a similar outcome ahead. We advise to wait for upside bias after the pair successfully close above this region.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0830,
- Bullish Scenario: Bullish sentiment prevails above 1.0830, first target 1.0900, second target 1.0930;
- Bearish Outlook: In a bearish scenario below 1.0830, first target 1.0805, second target 1.0780.
Conclusion
To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey.
For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.
Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets.
Stay tuned for more updates and analyses from our team of experts at Ultima Markets.
—–
Legal Documents
Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.
Copyright © 2023 Ultima Markets Ltd. All rights reserved.
Disclaimer
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.
