26/10/22 Daily Forex Analysis: EURUSD Price Smashes Through Parity

Wed 26th October 2022

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

• EURUSD
• GBPUSD

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

EURUSD Price Smashes Through Parity?

In today’s video update we focus on two forex pairs. The EURUSD and GBPUSD. These pairs will be our focus today as the live forex strength and weakness tables show us that the GBP (S1), EUR (S2), USD (W2).

The currency pair to watch is EURUSD as the price trades back above parity. Fundamentally the EURO is being supported by the upcoming expectation for the ECB to raise interest rates by 75bps this week.

Not only this but according to Reuters the Major Chinese state-owned Banks sold USD to help support the weakening Yuan.

This recent USD weakness has helped the EURUSD price rally back above key levels of resistance. 

The daily shows the price has broken out of the major trendline resistance suggesting higher prices will be tested. 

Going down to the 4hr trading time frame the price has recently broken through the previous highs. This could offer breakout traders an opportunity to trade to the next level of resistance. 

Technical Observations

• The EUR is S2 on the trend table and the USD is W2.
• Price is currently trading above the key level of 1.0000.
• ECB is expected to raise interest rates by 75bps.
• The price has broken through the major trendline resistance with the opportunity to test the next resistance above which is 1.0100.
• If the price becomes further supported a break above this resistance could lead to a move back to the monthly resistance of 1.0350.
• The 4hr chart has already made a new high, however if the price pulled back it could offer a retest entry.