Analytics & Forecasts

EUR/USD: the intrigue about the further actions of the Fed remains

7 December 2022, 13:28
Yuri Papshev
Yuri Papshev
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Until the end of this week, the weekly report of the US Department of Labor will be released with data on the number of applications for unemployment, November statistics on manufacturing inflation, as well as a preliminary consumer confidence index from the University of Michigan (for more information about upcoming events, see the Major economic events of the week 05.12.2022 - 11.12. 2022).

And today, the focus of market participants will be on the meeting of the Bank of Canada (we wrote about this in our previous review USD / CAD: on the eve of the meeting of the Bank of Canada), as well as the publication (at 13:30 GMT) of the final data from the US Bureau of Labor Statistics on productivity labor (outside the agricultural sector) and costs per unit of labor (for the 3rd quarter). Productivity and inflation are interrelated - a decrease in the productivity of a worker is equivalent to an increase in wages. At the same time, when businesses pay more for labor, the higher costs tend to be passed on to the consumer, thus pushing up inflation.

In an alternative scenario, and after the breakdown of the support level of 1.0448, EUR/USD will head towards the key support level of 1.0395. Its breakdown will be a signal to resume short positions on EUR/USD, and a breakdown of the support level of 1.0260 will confirm this downside scenario.

  Support levels: 1.0448, 1.0395, 1.0260, 1.0190, 1.0000, 0.9745, 0.9700, 0.9600, 0.9550, 0.9500

Resistance levels: 1.0500, 1.0600, 1.0700, 1.0750, 1.1035, 1.1100, 1.1150

Sell Stop 1.0440. Stop Loss 1.0540. Take-Profit 1.0395, 1.0260, 1.0190, 1.0000, 0.9745, 0.9700, 0.9600, 0.9550, 0.9500

Buy Stop 1.0540. Stop Loss 1.0440. Take-Profit 1.0600, 1.0700, 1.0750, 1.1035, 1.1100, 1.1150