Forex Analysis – EUR Pairs – November & December 2022

Our previous EUR Forex analysis click here

Technical Analysis

FOREX ANALYSIS: EURCHF – Down-trending. End of the trend?

EURCHF Forex price action chart — EURCHF Daily Chart

As suggested in our last analysis, price was bearish and swung lower.

EURCHF is down-trending but has recently been bullish and has formed a higher swing high, suggesting that the downtrend could be over. The moving averages continue to be bearish and widening though, so the downtrend could continue.

Opportunities to go short may exist around the longer-term moving average and around the horizontal levels at 0.9975, 1.0100, 1.0250, 1.0500 and 1.0600. A bearish move could be rejected or reverse around the shorter-term moving average and around the horizontal support levels at 0.9825, 0.9575 and 0.9500.

FOREX ANALYSIS: EURGBP – Possible upside?

EURGBP Forex price action analysis — EURGBP Daily Chart

Price bounced off the horizontal levels at 0.8590, as suggested in our last EUR chart analysis.

EURGBP was indecisive but recent price action has been bullish. Price has formed a short series of higher swing highs and higher swing lows, so the EURGBP may start up-trending. The moving averages confirm this – they are bullish and steady.

Opportunities to go long could exist around the dynamic support of the moving averages, around the trend support area and around the horizontal levels at 0.8600, 0.8525, 0.8350, 0.8275 and 0.8225. A bullish move may be rejected or reverse around the horizontal resistance levels at 0.8850 and 0.8975.

FOREX ANALYSIS: EURJPY – Up-trending

EURJPY technical analysis — EURJPY Daily Chart

As suggested in our previous EUR analysis, the EURJPY has been bullish and has continued to uptrend.

Price is clearly up-trending and is currently forming a swing higher. Price action has formed a bullish channel and the moving averages are bullish and steady, so the uptrend could continue.

Long opportunities may exist around the dynamic support of the moving averages, around the bullish channel support area and around any of the horizontal levels at 144.50, 141.50, 138.75, 134.75 and 133.50. EURJPY could stall or reverse around the channel resistance area.

FOREX ANALYSIS: EURUSD – Down-trending. Potential upside break?

EURUSD Forex daily chart — EURUSD Daily Chart

The EURUSD has continued to downtrend and be bearish, as suggested in our previous analysis.

Price is clearly down-trending within a bearish channel. EURUSD is currently in a retrace move. The channel resistance area has been tested many times, so price may potentially break higher. The moving averages continue to be bearish though and EURUSD is down-trending on higher time-frames, so the downtrend may continue.

Shorting opportunities could exist around the dynamic resistance of the moving averages, around the bearish channel resistance area and around the horizontal levels at 1.0125, 1.0375 and 1.0775. A bearish move may find support around the diagonal support area and around the horizontal support levels at 0.9700 and 0.9600.

Fundamental Analysis

Interest Rates

The European Central Bank (ECB) has increased it’s rates by 75bps, bringing the official rate to 1.25%. Further rate hikes are expecting in coming meetings, so the official rate will get higher, but no large rate hikes are expected.