FX.co ★ EUR/USD analysis and forecast for October 22, 2021

A completely different picture was observed if there was cautious optimism in the markets the day before yesterday. Investors had no appetite for risk, and they were looking for options to go to safe-havens. Naturally, with such sentiments, the US dollar was in demand as a protective asset and was in high demand. Moreover, the stock market was not at all optimistic, and it was declining. It seems that the US currency was supported by good macroeconomic reports on initial applications for unemployment benefits and data on the secondary housing market. Although both of these indicators cannot be called important, they have made a small contribution to strengthening the US currency. To finish the topic of yesterday's events, the representative of the Fed made comments that boiled down to the fact that the reduction of the quantitative easing program would not shock the markets. In my personal opinion, this is a relatively meaningless statement. The markets have been ready for a long time and have laid down the beginning and even the end of the QE program. Well, you have to say something. However, there is nothing new. Thus, you have to exaggerate the old information. However, the essence of this does not change, and the impact of such senseless speeches is very limited. The main macroeconomic reports of today will be the indices of business activity in the manufacturing and services sectors of the eurozone and the United States. However, Federal Reserve Chairman Jerome Powell is scheduled to speak at 16:00 London time. However, I do not think that the head of the Fed will tell market participants something new and radically different from previous statements. If so, then Powell's speech will have a fairly limited impact on the price dynamics of EUR/USD.

Daily

The pair did not try to break through the current key resistance of sellers at 1.1670. It did not even get to this mark. However, the closing price of yesterday's trading was again above the important level of 1.1600. But the breakdown of resistance at 1.1640 turned out to be false. However, the quote shows strengthening at the moment of writing, and the pair is trading near exactly 1.1640, again trying to return above this level. It is characteristic that the blue Kijun line of the Ichimoku indicator has decreased and is now at 1.1657. This factor can be considered a bearish signal, although not so strong and obvious. The main currency pair has been at a loss for the last two days and does not know how to move. The two-day range in which the euro/dollar is traded is very narrow, and it can be designated as 1.1617-1.1670. Given this factor, as well as the fact that weekly trading closes today, I recommend refraining from opening new positions and staying out of the market.