Comprehensive USDX Analysis for October 6, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for 6th October 2023. 

The Core: Fundamental Factors

• ADP Employment Data: Recent ADP employment data showed a significant drop below expectations. This is a crucial indicator of labor market dynamics.
• Historically Low Jobless Claims: The announcement of 207,000 initial jobless claims last week, still at a historical low, underscores the robustness of the job market.
• Fewest Quarterly Layoffs: U.S. companies have reported the fewest quarterly layoffs in a year due to strong seasonal hiring plans. This is a significant positive signal for the economy.

The Turning Point: Interest Rates

The above factors collectively raise questions about the possibility of interest rate adjustments in the near future. The final decision hinges on the impending release of US non-farm employment data, due tonight. This data will be pivotal in shaping the USDX’s trajectory.

The Technical Aspect: USDX Trends

• Daily Chart Trends: On the daily chart, the US dollar index has experienced a two-day decline. The stochastic oscillator’s dead cross in the overbought area suggests a short-term downtrend.
• Bearish Trend: To confirm a bear trend, it’s crucial for the USDX to break effectively below its recent lows. The initial target rests near the blue 17-day moving average.
• Hourly Chart Insights: On the hourly chart, the market has breached the support level around 106.23. The ATR combination indicator confirms this breakdown.
• Pivot Indicator: As per Ultima Markets’ pivot indicator, the central price for the day is 106.200.

Daily chart of USDX

(Daily chart of USDX, source: Ultima Markets MT4) 

1-hour chart of USDX

Although it has increased the probability of a bear trend, it still needs to wait for the U.S. dollar index to effectively fall below the lowest price. The price may be relatively limited. The first target is near the blue 17-day moving average. 

(1-hour chart of USDX, source: Ultima Markets MT4) 

Pivot Indicators

On the 1-hour chart, the market fell below the support level around 106.23, and the ATR combination indicator hinted at the effectiveness of the breakdown. Waiting for the price to retreat and see if there is any chance of further downward movement. 

(Pivot Indicators for USDX, source: Ultima Markets MT4)

Potential Scenarios

According to the pivot indicator in Ultima Markets MT4, the central price of the day is 106.200. 

• Bullish Above 106.200: If the USDX remains above 106.200, the first target is 106.363, with a secondary target at 106.755.
• Bearish Below 106.200: In case the USDX dips below 106.200, the initial target is 105.805, with a secondary target at 105.640.

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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. 

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.

Copyright © 2023 Ultima Markets Ltd. All rights reserved. 

Comprehensive USD/CAD Analysis For October 5, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CAD for 5th October 2023. 

Key Takeaways

• U.S. Economic Data: The release of subpar U.S. economic data acted as a catalyst for market movements. This data sent shockwaves through the forex market, causing traders to react by selling off the U.S. dollar.
• Crude Oil Market: Another significant factor was the impending destruction of crude oil demand. This development, coupled with the gloomy macroeconomic outlook, played a substantial role in shaping the forex landscape. As crude oil prices began to fall, the depreciation of currencies in energy-exporting countries gained momentum.
• Canadian Dollar’s Depreciation: The Canadian dollar, in particular, saw a short-term depreciation trend that intensified due to the interplay of these factors.

USD/CAD Technical Analysis

USD/CAD Weekly Chart

The weekly chart of USD/CAD in October 2023 revealed a pivotal development. The closing line for the week was on the verge of breaking through the suppression of the downward trend line, which had been in place since October of the previous year. Furthermore, the stochastic oscillator was on the cusp of reaffirming the upward trend.

(Weekly chart of USD/CAD, source: Ultima Markets MT4) 

USD/CAD 4-Hour Chart Analysis

Zooming in on the 4-hour chart, we identified a weakening of prices following the recent breach of the weekly downward trend line. The stochastic oscillator displayed a divergent downward trend, indicating that the exchange rate was likely entering an adjustment cycle.

(4-hour chart of USD/CAD, source: Ultima Markets MT4) 

USD/CAD 1-Hour Chart Insights

On the 1-hour chart, the 23.6% retracement level at 1.36923 emerged as an extremely critical support price. This level could potentially mark the end of the downward trend. Conversely, falling below this level would signify a breach of the weekly downward trend line, casting doubts on the legitimacy of the recent upward trend.

(1-hour chart of USD/CAD, source: Ultima Markets MT4) 

USD/CAD Pivot Indicator

(1-hour chart of USD/CAD, source: Ultima Markets MT4) 

According to the pivot indicator in Ultima Markets MT4, the central price of the day was 1.37375. 

• Bullish above 1.37375, the first target is 1.37846, the second target is 1.38264 
• Bearish below 1.37375, first target 1.36966, second target 1.36495 

Conclusion

In conclusion, October 2023 brought about a series of significant fundamental and technical developments in the USD/CAD forex market. Traders were faced with key decision points, influenced by a variety of factors, from U.S. economic data to crude oil prices.

The forex market remains inherently volatile, emphasizing the importance of informed, strategic, and responsive trading decisions.

At Ultima Markets, we are committed to providing valuable market insights to empower your trading decisions.

While this article offers a comprehensive overview of the USD/CAD situation in October 2023, it’s essential to keep a watchful eye on market developments and continue refining your trading strategies to stay ahead in the competitive world of forex trading.

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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. 

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.

Copyright © 2023 Ultima Markets Ltd. All rights reserved. 

Comprehensive GBP/NZD Analysis for October 4, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of GBP/NZD for 4th October 2023. 

Key Insight: RBNZ Interest Rate Decision and Economic Outlook

• RBNZ Decision: The Reserve Bank of New Zealand (RBNZ) has opted to maintain the interest rate at 5.50%.
• Consistency: Notably, this marks the third consecutive time that the central bank has refrained from adjusting interest rates.
• GDP Growth: Despite a stronger-than-expected GDP growth in the June quarter, the overall growth outlook remains subdued.
• Global Economic Risks: The RBNZ Committee has expressed concerns about downside risks to the global economic growth outlook in the medium term.
• Short-Term Currency Trends: In the short term, the New Zealand dollar may face a depreciation trend.

Technical Analysis: A Closer Look on GBP/NZD Trading Charts

GBP/NZD Daily Chart Insights

Reversal Structure: The daily chart illustrates a clear reversal structure, with the 240-day moving average acting as a significant resistance point.

( Daily chart of GBP/NZD, source: Ultima Markets MT4) 

The stochastic oscillator technical indicator has also left the oversold area after being oversold for nearly 9 trading days. The market may continue to rebound and rise today. 

GBP/NZD 4-Hour Chart Observations

• Motive Wave: A five-wave upward structure has emerged since the end of September, signaling a potential motive wave.
• Moving Average Test: The market has surged rapidly and is nearing the 65-period moving average, a level to monitor for potential breakout.

(4-hour chart of GBP/NZD, source: Ultima Markets MT4) 

Pivot Indicator

(1-hour chart of GBP/NZD, source: Ultima Markets MT4) 

Central Price: According to Ultima Markets MT4 pivot indicator, the central price for the day stands at 2.04099.

• Bullish Outlook: A price movement above 2.04099 could trigger an upward momentum, targeting 2.05336 as the first level of resistance and 2.06164 as the second.
• Bearish Outlook: A dip below 2.04099 may indicate a bearish trend, with the first support level at 2.03301 and the second at 2.02075.

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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. 

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.  

Copyright © 2023 Ultima Markets Ltd. All rights reserved. 

Comprehensive Brent Oil Analysis for October 3, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the Brent Oil (UKOUSD) for 3rd October 2023. 

Key Takeaways

Key Point: The lifting of the U.S. government shutdown crisis, coupled with robust PMI data, has driven the U.S. dollar index to 107, a level not seen since November last year. This surge in the dollar’s strength has led to a sharp decline in non-U.S. currencies and a corresponding dip in crude oil prices, reaching three-week lows.

• Increased OPEC Production: Notably, OPEC’s oil production increased by 120,000 barrels per day in September compared to August, reaching 27.73 million barrels per day for the second consecutive month.
• Bearish Sentiment Emerges: Concerns over increased supply and the impact of high interest rates on demand have prompted bearish sentiment in the crude oil market.

Brent Oil Technical Analysis

Brent Oil Daily Chart Analysis

( Daily chart of BRENT OIL, source: Ultima Markets MT4) 

Key Point: The daily chart reveals a rapid decline in crude oil prices, signaling a strong bearish trend.

Stochastic Oscillator Signals

Key Point: Stochastic oscillator technical indicators suggest a divergence from market prices, indicating a high probability of short-term bearishness.

Brent Oil 1 Hour Chart Analysis

(1hour chart of BRENT OIL, source: Ultima Markets MT4) 

Key Point: Recent significant volatility is observed on the 1-hour chart, with the ATR combination indicator signaling an effective breakthrough. Traders should exercise caution and monitor entry opportunities.

Pivot Indicator

(1-hour chart of BRENT OIL, source: Ultima Markets MT4) 

Key Point: According to the pivot indicator in Ultima Markets’ MT4 platform, the central price of the day stands at 92.210. Technical outlook:

• Bullish Scenario: Above 92.210, with targets set at 92.951 and 95.175.
• Bearish Scenario: Below 92.210, with targets at 90.003 and 89.210.

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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. 

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.  

Copyright © 2023 Ultima Markets Ltd. All rights reserved. 

Comprehensive AUD/USD Analysis for September 28, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of AUD/USD for 28th September 2023. 

Key Takeaways

• Australian Inflation: Australian inflation reached a notable 5.2% in September 2023, in line with market expectations. This marked a significant uptick since June and is primarily attributed to the depreciation of the Australian dollar and rising oil prices.
• Market Perception: The market’s consensus was that these inflationary pressures, while substantial, would not be adequate to persuade the RBA to pursue an interest rate hike strategy. As a result, the initial reaction in the currency markets was mixed. The Australian dollar experienced a short-lived appreciation, but the prevailing sentiment soon led to a decline.

Short-Term vs. Long-Term Impact

• Short-Term Outlook: The short-term Australian data had a limited impact on the currency pair. Market attention swiftly shifted to the United States, with a specific focus on the core PCE data. Should this data continue to show an upward trend, it could maintain the possibility of interest rate hikes during the year, consequently bolstering the US dollar.
• Budgetary Concerns: However, the situation in the United States presents a significant variable. The fiscal year for 2023 is concluding, and if political parties fail to reach an agreement on the budget, the risk of a government shutdown looms large. In such an event, the market may seize the opportunity to speculate on a weakening US dollar.

Technical Analysis

AUD/USD Daily Chart Analysis

(Daily chart of AUD/USD, source: Ultima Markets MT4) 

Significant Decline: The daily chart indicated an expected decline in the exchange rate following the inflation data release. Subsequently, the market exhibited a distinctive Wolfe wave pattern, which carries the potential for a substantial rebound. It’s important to note that this pattern does not signify a definitive trend reversal at this stage.

AUD/USD 4-Hour Chart Analysis

(4-hour chart of AUD/USD, source: Ultima Markets MT4) 

Divergence Structure: Transitioning to the 4-hour chart, the price decline led to the formation of a stochastic divergence pattern. This suggests that sellers may find motivation to close their positions and exit at the support level. Observing the influence of the 33-period moving average is crucial.

AUD/USD 1-Hour Chart Analysis

(1-hour chart of AUD/USD, source: Ultima Markets MT4)

Critical Zone: Within the 1-hour timeframe, the area around 0.63853 is a crucial support and resistance conversion zone. This level is also proximate to the 65-period moving average. A potential breakout above this resistance level may pose challenges for the Australian dollar in maintaining its downward trajectory for the day.

Pivot Indicator

(1-hour chart of AUD/USD, source: Ultima Markets MT4)

Key Price Levels: According to the pivot indicator within Ultima Markets MT4, the central price for the day stands at 0.63638.

• In bullish scenarios above this level, the first target is 0.63977, and the second target extends to 0.64422.
• In bearish scenarios below 0.63638, the first target is 0.63204, with the second target at 0.62868.

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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. 

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.  

Copyright © 2023 Ultima Markets Ltd. All rights reserved. 

Comprehensive AUD/USD Analysis for September 27, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the AUD/USD for 27th September 2023. 

Key Takeaways

Fundamentally, our analysis centers on the forthcoming release of Australia’s August CPI data and its potential repercussions for the AUD/USD market. Key takeaways include:

• Inflation Expectations: Market consensus points to a potential inflation rise from 4.9% in July to 5.2% in August, fueling discussions on impending interest rate hikes.
• Drivers of Inflation: The depreciation of the Australian dollar and escalating oil prices are identified as the driving forces behind the expected inflation surge.
• RBA’s Dilemma: The Reserve Bank of Australia (RBA) faces the pivotal decision of whether to implement interest rate hikes, with market expectations influencing their stance.
• Market Reaction: Anticipate a post-data release rebound in the Australian dollar, though the sustainability of this uptrend remains uncertain.

AUD/USD Technical Analysis

AUD/USD Daily Chart Analysis

( Daily chart of AUD/USD, source: Ultima Markets MT4) 

On the daily chart, the U.S. dollar index has exhibited a notable upward trajectory. Key technical observations include:

• Breakthrough: The U.S. dollar index has closed above the upper boundary of its consolidation range.
• Stochastic Oscillator: An upward cross on the stochastic oscillator underscores the bullish trend in the U.S. dollar index.

AUD/USD 4-hour Chart Observations

(4-hour chart of AUD/USD, source: Ultima Markets MT4) 

Shifting focus to the 4-hour chart, we identify essential technical aspects that inform market dynamics:

• Previous High Breakthrough: Following a 12-day consolidation phase after the U.S. dollar index surpassed its previous high on September 5, it has continued its upward course.

1-hour Chart and ATR Combination Indicator

(1-hour chart of AUD/USD, source: Ultima Markets MT4) 

The 1-hour chart and the ATR combination indicator offer granular insights into the market:

• Breakthrough Effectiveness: The ATR combination indicator supports the effectiveness of the U.S. dollar index breakthrough.
• Potential Retracement: During the Asian session, a retracement is anticipated, necessitating patience from traders. The initial target is set at 105.443.

Pivot Indicator Analysis

(1-hour chart of AUD/USD, source: Ultima Markets MT4) 

Ultima Markets MT4’s pivot indicator serves as a vital reference point for traders:

• Central Price: The central price for the day is positioned at 105.527.
• Bullish Scenario: A bullish outlook prevails above 105.527, with the first target at 105.874 and the second target at 106.123.
• Bearish Scenario: Conversely, in a bearish scenario below 105.527, the first target is 105.282, with the second target at 104.937.

Conclusion

Comprehensive USDX Analysis for September 26, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for 26th September 2023

Key Takeaways

The Federal Reserve’s stance has emerged as the linchpin shaping the USDX’s performance.

While September saw a halt in interest rate hikes, the dot plot projections signal a potential resurgence in rate increases later in the year.

This is underpinned by a forthcoming, more hawkish monetary policy in the next year, with a notable reduction in the number of projected interest rate cuts.

USDX Technical Analysis

USDX Daily Chart Insights

( Daily chart of USDX, source: Ultima Markets MT4) 

Turning our focus to the technical landscape, the USDX exhibits compelling upward momentum.

The daily chart reveals a breakthrough as the US Dollar Index’s price closes above its consolidation range’s upper boundary.

Moreover, the stochastic oscillator, a pivotal technical indicator, has signaled a bullish trajectory.

USDX 1-Hour Chart Analysis

(1-hour chart of USDX, source: Ultima Markets MT4) 

The one-hour chart presents a more granular picture, with the ATR combination indicator affirming the effectiveness of the recent breakthrough.

Although retracement is conceivable during the Asian trading session, a market rebound is anticipated. The initial target is fixed at the support price of 105.443.

Ultima Markets Pivot Indicator

(1-hour chart of USDX, source: Ultima Markets MT4) 

Ultima Market’s MT4 pivot indicator designates the day’s central price at 105.527. For investors and traders, here are the essential projections:

Bullish Scenario:

• Bullish above 105.527
• First target: 105.874
• Second target: 106.123

Bearish Scenario:

• Bearish below 105.527
• First target: 105.282
• Second target: 104.937

These projections, though subject to market dynamics and emerging data, provide a compass for navigating the ever-evolving terrain of financial markets.

Conclusion

Comprehensive USD/CNH Analysis for September 22, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CNH for 22nd September 2023.

Key Takeaways

The Federal Reserve’s Decision: In September, the Federal Reserve made a pivotal decision to halt interest rate hikes. The dot plot hints at the possibility of future rate increases.

Furthermore, the overall monetary policy for the upcoming year leans towards a more hawkish stance, with a shift from an anticipated 5 interest rate cuts to just 2.

These factors collectively maintain the US dollar’s dominance, momentarily placing non-US currencies at a disadvantage.

USD/CNH Technical Analysis

USD/CNH Daily Chart Signals

(Daily chart of USD/CNH, source: Ultima Markets MT4) 

Rebound and Candle Pattern: Our analysis of the daily chart reveals an interesting rebound in the USD/CNH pair after reaching the 33-day moving average.

This rebound pattern closely resembles a head and shoulders candle formation. This chart development signifies a potential right shoulder formation.

USD/CNH 4-Hour Chart Dynamics

(4-hour chart of USD/CNH, source: Ultima Markets MT4) 

Rebound Magnitude: Transitioning to the 4-hour chart, we observe that the recent rebound of USD/CNH has reached a significant level, approximately 1.618 times the rebound height recorded on September 14.

It is vital to keep a close watch on market movement below the 65-period moving average to gain insights into the conclusion of the market rebound.

Insights from the 1-Hour Chart

（1-hour chart of USD/CNH, source: Ultima Markets MT4) 

Equilibrium in the Market: On the 1-hour chart, the moving average remains a pivotal support for the market.

The stochastic oscillator hovers around the middle area at 50, indicating an equilibrium between bullish and bearish sentiments.

To confirm the initiation of short positions, a market movement below the moving average group is crucial.

Ultima Markets Pivot Indicator

(1-hour chart of USD/CNH, source: Ultima Markets MT4) 

Key Price Level: According to the pivot indicator in Ultima Markets MT4, the central price for the day stands at 7.31286.

A bullish sentiment prevails above this level, with the first target at 7.32288 and the second target at 7.33139.

Conversely, a bearish stance is favored below 7.31286, with the first target at 7.30435 and the second target at 7.29450.

Conclusion

Comprehensive AUD/USD Analysis for September 21, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the AUD/USD for 21st September 2023.

Key Takeaways

Federal Reserve’s Monetary Policy: Key to understanding this dynamic currency pair is the recent decision by the Federal Reserve.

In September, they opted to halt interest rate hikes. Notably, the dot plot still indicates the potential for rate increases later in the year.

Looking ahead, the monetary policy for the following year leans towards a more hawkish stance, with the likelihood of a shift from 5 interest rate cuts to just 2.

These developments have bolstered the US dollar, placing non-US currencies at a short-term disadvantage.

AUD/USD Technical Analysis

Understanding the technical aspects of AUD/USD is paramount for making informed trading decisions. Here, we provide an exhaustive analysis of the charts, offering a comprehensive view of the current scenario.

AUD/USD Daily Chart Analysis

( Daily chart of AUD/USD, source: Ultima Markets MT4) 

The daily chart reveals a noteworthy pin bar formation in the Australian dollar against the US dollar, following contact with the 33-day moving average.

This development carries significance, particularly given the robust position of the US dollar, which may exert further downward pressure on the exchange rate.

Analyzing the AUD/USD 4-Hour Chart

(4-hour chart of AUD/USD, source: Ultima Markets MT4) 

Structurally, the market has formed a platform corrective wave, indicating a probability of the ongoing downward trend.

This insight is invaluable for anticipating market dynamics and making well-informed trading decisions.

Ultima Markets Pivot Indicator

(1-hour chart of AUD/USD, source: Ultima Markets MT4) 

Ultima Markets MT4’s pivot indicator places the central price for the day at 0.64657. To assist your trading strategies, we outline bullish and bearish scenarios:

Bullish above 0.64657, targeting 0.64926 as the first objective and 0.65377 as the second.

Bearish below 0.64657, with the initial target set at 0.64216 and the subsequent target at 0.63949.

Conclusion

Focus on EUR/USD today. 

Fundamentally, the Federal Reserve will announce its latest interest rate decision, and it is basically a certainty that interest rates will remain unchanged. However, since the Federal Reserve will also release its latest Summary of Economic Predictions(SEP), the dot plot is the focus of the market’s attention.  

The most debated question right now is whether the Fed will raise interest rates by the end of the year, and whether the monetary policy in 2024 will change the stance taken in June and a more conservative interest rate path will be adopted. These all affect the direction of the U.S. dollar index. If the Federal Reserve changes its stance on interest rate cuts in 2024, the U.S. dollar index will fall significantly. Otherwise, the U.S. dollar index will further break through the high point. 

Technically, although the stochastic oscillator has crossed upward on the daily chart, the exchange rate has always been suppressed by the 5-day moving average, and the market is more likely to form a consolidation range. 

( Daily chart of EUR/USD, source: Ultima Markets MT4) 

The candle bar yesterday was a pin bar, so the structure today is more important. If it breaks through yesterday’s high, the market’s rebound space will further look closer to the 200-day moving average; if a large physical candle bar closes today, the exchange rate may fall further. 

(4-hour chart of EUR/USD, source: Ultima Markets MT4) 

On the 4-hour chart, after the market hit the resistance area composed of the 65-day moving average and the 33-day moving average, the stochastic oscillator began to cross downward. Structurally, the EURUSD has formed a relatively clear rising flag-shaped consolidation area, and there is a certain probability that the short trend will continue after falling below it. 

(1-hour chart of EUR/USD, source: Ultima Markets MT4) 

If you look at the 1-hour chart structure, you will find it is clearer. As the stochastic oscillator remains in oversold territory, the Asian session may remain consolidated. You need to wait patiently for the price to fall below yesterday’s low and the lower edge of the flag channel, and then switch to a smaller cycle to look for intraday entry opportunities.

(1-hour chart of EUR/USD, source: Ultima Markets MT4) 

According to the pivot indicator in Ultima Markets MT4, the central price of the day is 1.06908. 

Bullish above 1.06908, first target 1.07063, second target 1.07334 

Bearish below 1.06908, first target 1.06635, second target 1.06477 

Disclaimer 

Comments, news, research, analysis, prices and other information contained in this article can only be regarded as general market information, provided only to help readers understand the market situation, and do not constitute investment advice. Ultima Markets will not be responsible for any loss or loss (including but not limited to any loss of profits) that may arise from the direct or indirect use or reliance on such information.