Can USD Recover?

Can USD Recover?

2023-11-28 • Updated

The EURUSD pair is currently making steady gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the European Central Bank, cautioned that headline inflation might see a slight increase, and economic growth is anticipated to remain weak. However, Lagarde didn't provide clear indications on the duration of maintaining restrictive rates or the timeline for rate cuts. The focus for the rest of the week will be on Eurostat's release of the Harmonized Index of Consumer Prices (HICP) and the U.S. report on the Core Personal Consumption Expenditures Index (PCE), influencing short-term expectations for the ECB and the Fed.

EURUSD - D1 Timeframe

EURUSDDaily-2711.png

EURUSD is currently trading around a major supply zone on the daily timeframe. The bearish array of the moving averages can be considered an additional confluence in support of the bearish sentiment. In the meantime though, there is a trendline support on the 4-Hour timeframe that I will be expecting price to break, before the bearish move can commence.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.06965

Invalidation: 1.10556

GBPUSD - D1 Timeframe

GBPUSDDaily-2711.png

GBPUSD is currently at an intersection of a supply zone and a trendline resistance. Usually, this is considered basis enough for a bearish sentiment. However, considering the apparent lack of volatility from the US Dollar, I will personally wait to see a break of the minor trendline support on the 4-Hour timeframe for a safer entry, as in the case of EURUSD.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.22494

Invalidation: 1.27452

USDJPY - D1 Timeframe

USDJPYDaily-2711B.png

USDJPY is currently approaching the major demand zone with an overlapping trendline support. Based on this, I am expecting a bounce off of the trendline with an initial target at the 76% of the Fibonacci retracement level.

Analyst’s Expectations: 

Direction: Bullish

Target: 150.281

Invalidation: 145.692

CONCLUSION

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