02.11.202316:39 Forex Analysis & Reviews: Trading Signals for EUR/USD for November 2-7, 2023: buy above 1.0579 (4/8 Murray - 21 SMA)

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Early in the American session, EUR/USD was trading around 1.0652 with a bullish bias. Yesterday in the American session, the instrument reached the psychological level of 1.05 and from there, it is bouncing. On the daily chart, we can see that the euro is above the 21 SMA and below the 200 EMA.

The daily chart of the Euro shows that it is trading within a bullish channel formed on September 27. EUR/USD is expected to reach the top of the channel in the coming days or it could even reach the strong resistance zone between 4/8 Murray and the 200 EMA around 1.0742 if bullish strength prevails.

Yesterday the US dollar (USDX) lost its strength as the Federal Reserve decided to keep interest rates unchanged at 5.50% for the second consecutive meeting without giving clear clues on what it would do in the future regarding its monetary policy.

Chairman Jerome Powell did not explain if the monetary tightening is over. This makes investors stop taking refuge in the dollar, so they may flock to risky assets such as the euro and all crosses against the US dollar.

According to the daily chart, EUR/USD has maintained bullish momentum since September 27th. The eagle indicator is giving a positive signal. So, the price is expected to reach strong resistance at 1.0742 in the coming days. If this level is overcome, the euro could reach 5/8 Murray at 1.0864 and finally, the psychological level of 1.10.

On the H4 chart, the EUR/USD pair is also showing a positive signal, which supports a bullish trend. Therefore, any pullback of the euro and as long as it trades above the 21 SMA at 1.0579 or above 2/8 Murray at 1.0498 could be seen as an opportunity to buy.

Our trading plan for the next few hours is to buy the euro at current price levels with the target at 1.0735 (200 EMA). Around this level, we could check if the Euro fails to break above the 200 EMA. Hence, it could be seen as an opportunity to sell with targets at 1.0620 and 1.0540.

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