The ECB, too, judging by the statements of its representatives, is ready to continue the accelerated tightening of its policy. But here it is also necessary to take into account the difference in the economic situations in the US and the Eurozone, given also the high geopolitical risks in Europe and the crisis in the European energy market, despite the fact that the US is their producer.
Economists believe that it will be difficult for the EUR/USD pair to gain a stable foothold in an area of any significant above parity. Therefore, when a sell signal appears, it should be resumed. The signal could be a breakdown of the support levels 0.9883, 0.9905, 0.9920, and the nearest target is the local support level 0.9745.
Today, the focus of market participants are midterm elections to the US Congress. However, their final result is likely to be known only tomorrow.
In general, EUR/USD bearish momentum remains, and “from a fundamental point of view, we should expect a resumption of decline, at a minimum, and at a maximum, a further fall of the pair towards 20-year lows, when it was trading near 0.8700, 0.8600.”
*) for the events of the upcoming week, see the Key economic events of the week 07.11.2022 – 13.11.2022
Support levels: 0.9920, 0.9905, 0.9883, 0.9800, 0.9745, 0.9700, 0.9600, 0.9535, 0.9500, 0.9400, 0.9300, 0.9200, 0.9000
Resistance levels: 1.0090, 1.0100, 1.0210, 1.0390, 1.0500