EUR/USD - Euro-dollar bounces but $1.088 looks like a big hurdle - 10/31/2024 (GMT)

Apart from slightly disappointing American GDP, euro-dollar has also made gains in recent days on stronger than expected growth in the eurozone generally and in major national economies. Preliminary German inflation for October rose more than expected to 2%.

Relatively high volume of buying and a move out of oversold by the slow stochastic after 24 October’s upward engulfing candlestick would usually suggest an ongoing bounce, but that looks more difficult with the 200 SMA only slightly above the current price. If there’s a break above there, the target would probably be the value area between the 50 and 100 SMAs slightly below $1.10.

A clear break back to $1.07 and the 100% weekly Fibonacci retracement doesn’t seem at all favourable for now. However, a positive surprise from the NFP could push the price back to its recent starting point near $1.076 at least temporarily.

This is my personal opinion which does not reflect the opinion of Exness. This is not a recommendation to trade.