EURUSD Analysis Week 43🌐Fundamental Analysis
The European Central Bank (ECB) cut its key interest rate by 25 basis points (bps) as expected after its October policy meeting. In its policy statement, the ECB noted that it will continue to pursue a data-dependent and meeting-by-meeting approach to determine the appropriate level and duration of policy accommodation.
In her post-meeting press conference, ECB President Christine Lagarde acknowledged that economic activity in the Eurozone has been weaker than expected. On the inflation outlook, Lagarde said low confidence, geopolitical tensions and low investment pose downside risks to inflation. Lagarde's dovish tone kept the euro under pressure in the second half of Thursday.
The economic calendar will not feature any high-impact data on Friday. Meanwhile, US stock index futures traded in positive territory during the European session.
🕯Technical Analysis
EURUSD has recovered at the end of the week after consecutive bearish pullbacks. The downtrend is still showing no signs of stopping as the bullish waves are still relatively weak. At least the pair must recover and close above the 1.095 area to be considered a broken downtrend. Watch the resistance zone when the price recovers around 1.095 and 1.103 for SELL signals. The extended pullback of the pair may extend to 1.072 before the bulls can jump in to prevent the pair from continuing to slide.
📈📉Trading Signals
BUY EURUSD 1.07200-1.07000 Stoploss 1.06800
SELL EURUSD 1.09500-1.09700 Stoploss 1.09900
