03/11/22 Daily Currency Strength Analysis: EURUSD- USD Strength Returns After FOMC

Thurs 3rd November 2022

Today, Our Daily Currency Strength Weakness Video will focus on:

• EURUSD
• AUDUSD

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

EURUSD- USD Strength Returns After FOMC Rate Decision

In today’s currency strength video we identified that the USD is S2 on both tables. The EUR is W2 on the trend tables and AUD is W3.

The last time EURUSD featured on the currency strength indicator tables was on the 3rd October. On this date the EUR and USD were on the same side of the tables in the strength column which led to the currency pair moving sideways. 

Recent news saw the Federal Reserve hike interest rates to 4.00% but highlighted that they could begin to slow down the pace of tightening. This was the met with comments by Federal Reserve Chairman Powell stating that rates will need to be much higher. 

Now they are on the opposite side to each other with USD on the strong side and EUR on the weak side. This now gives us the idea that the long term downward trend will continue.

Price of EURUSD continues to battle with the parity level and has failed to close above it on the weekly chart. This will give a lot of confidence to sellers looking for further short opportunities.

Technical Observations

• The USD is S2 on the trend table and the EUR is W2 on the trend tables.
• The price is trading below the key parity level of 1.000. 
• Trendline resistance has been respected in the past and could be used as resistance again if price makes a lower high.
• Confluence of this could be found at the horizontal level of 0.9800.
• If the price does move lower the key support from the higher time fame is 0.9450 which could be targets for short trades.
• The price has also traded through a bullish trendline support showing the strength of sellers.