The October HICP (Harmonized Index of Consumer Prices) for the Eurozone was released yesterday at 2.0%, above the expected 1.9%, marking the first increase in three months. This drove the euro up to 1.0888. However, at this level, the Bollinger Bands and the 200-day moving average acted as resistance, keeping the euro from rising further.
Over the next day or two, it’s expected that the 21-day moving average line of the Bollinger Bands will cross below the 200-day moving average, signaling a possible decline in the euro. Today’s US employment report, which may be stronger than expected based on ADP data, could also impact the euro.
If the euro rises clearly above 1.09 dollars, this could actually speed up its climb, so that’s something to watch closely.
EUR/USD Forecast Range: 1.0900 – 1.0830
Note: This information does not guarantee profit. Please make trading decisions based on your own judgment.