empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

22.11.202207:38 Forex Analysis & Reviews: Breaking forecast for EUR/USD on November 22, 2022

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The forex market needed a correction. Therefore, it used Germany's PPI data, which hardly ever causes such a strong impact, as the opportunity to enter it. However, once it became known that producer prices in Germany slowed down to 34.5% from 45.8%, the euro instantly plummeted by about 100 pips. Indeed, the reading had been expected to fall to 42.0%. In light of such a steep decline, we may now assume that inflation in the eurozone may soon go down. Consequently, the ECB will have no reason for aggressive tightening in the future. Germany's data is clearly not enough to conclude about the entire euro area. Still, it was enough to trigger a correction in the market, especially in the face of the excessively oversold greenback.

Germany Producer Price Index:

Exchange Rates 22.11.2022 analysis

No important macro releases are scheduled in the eurozone for today. In this light, the trend movement stopped yesterday and the market started to stabilize near the previously reached levels. Therefore, a sideways trend is highly likely today.

The EUR/USD pair was in a downtrend on Monday. After a breakout through 1.0300, the overbought euro entered a correction.

The RSI confirms the corrective movement on the H4 chart. The indicator broke through line 50 to the downside, signaling an increase in selling volumes.

The Alligator's moving averages signal a bearish reversal on the H4 chart, which is also in line with the correction. In the daily time frame, the indicator still shows an uptrend, ignoring the corrective movement.

Exchange Rates 22.11.2022 analysis

Outlook

If the correction continues, the quote may fall to 1.0150. This level is seen as support, so a rebound may take place.

If the price consolidates below 1.0150 on the H4 chart, it may show an impending reversal.

As for complex indicator analysis, the corrective movement gives a sell signal for short-term and intraday trading. In the medium term, there is a buy signal.

Dean Leo
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off