EUR/USD continues to trade modestly higher on the day above 1.0400 as trading action turns subdued on Thanksgiving day. The ECB's October meeting account showed that some members preferred a 50 bps hike but this comment had no impact on the Euro.

From a technical point of view, the daily chart for the EUR/USD pair shows that bulls may have paused but also that they are far from giving up. The Momentum indicator retreated from its peak within overbought readings, heading south far above its 100 level and falling short of hinting at another leg south. Meanwhile, the RSI indicator consolidates at around 65, reflecting the absence of directional strength. At the same time, the pair is hovering around its 200 SMA, battling the indicator, while the 20 SMA keeps advancing below the current level and above a flat 100 SMA.

The 4-hour chart shows an easing upward strength, as technical indicators eased from their recent peaks but hold well above their midlines. At the same time, the 20 SMA advances below the current level, slightly above a Fibonacci support level at 1.0305, the 23.6% retracement of the 0.9729/1.0480 rally. The pair needs to advance beyond 1.0480 to resume the bullish path, but it seems quite unlikely the pair could gain such momentum in tinned market conditions.

The Business Climate improved by more than anticipated, hitting 86.3 after the October reading was confirmed at 84.5. Expectations were up to 80, while the assessment of the current situation also improved, although by less than anticipated.

EURUSD is in the mood of consolidation

Nov 24 2022

Stop Loss -0.66%

Holding time 3d4hr

1.04379

Entry price

1.05069

Stop loss price