Indicators are now starting to turning higher, hinting that the EURUSD pair may once again test toward the 1.1431 resistance level. Gain insight from the following technical analysis.
29 October, OctaFX – The euro rose slightly in the Asian session. This was even after Angela Merkel’s coalition government continued to face increased political tensions. On Sunday, a regional election in Hesse saw the coalition parties lose.
The Christian democrats lost 10 points while the Social democrats suffered the worst defeat ever. This means that Merkel’s chances of serving a full term have reduced sharply. In addition, on Friday, S&P cut Italy’s outlook to negative and affirmed its credit rating.
EURUSD Technical Analysis
The EURUSD pair rose slightly today after reaching a low of 1.1335 on Friday. The movement in price today is important because last week, the pair had almost touched the important level of 1.1300.
On the four-hour chart, the current price is along the 14-day moving average but lower than the 28-day EMA. The RSI has moved from 30 to the current 44. The pair will likely move up as shorts exit their previous trades at a profit.
However, the movement will still depend on the ADP employment data on Wednesday.
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