FX.co ★ EUR/USD Technical Analysis and Trading Tips for November 2, 2022

As of writing, EUR/USD was trading near 0.9888, remaining in the zone between strong short-term levels—support 0.9880 (200 EMA on the 4-hour chart) and resistance 0.9910 (200 EMA on the 1-hour chart and 50 EMA on the daily chart). The conditional spring is compressed on the eve of the publication of the Fed's decision on rates.

Investors are more interested in what US central bank officials have to say about the monetary policy outlook.

Together with the data published yesterday on the state of the manufacturing sector of the US economy, the positive data expected this week from the US labor market give more reason to the Fed leaders to continue a tight monetary policy. How long? Perhaps we can learn something about it today.

In general, the downward dynamics of EUR/USD remains, while below the key resistance levels of 1.0230 (144 EMA on the daily chart), 1.0410 (200 EMA on the daily chart), the pair is in the zone of a long-term bear market. The first signal for the resumption of short positions will be a breakdown of the support level 0.9880 and yesterday's low of 0.9853.

In an alternative scenario, the corrective growth will continue towards the resistance levels 1.0195, 1.0230. Further growth of the EUR/USD pair will be fraught with significant difficulties, given the approaching winter and gas shortages, 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 traded near 0.8700, 0.8600".

Support levels: 0.9880, 0.9853, 0.9800, 0.9700, 0.9600, 0.9535, 0.9500, 0.9400, 0.9300, 0.9200, 0.9000

Resistance levels: 0.9910, 1.0047, 1.0100, 1.0195, 1.0230, 1.0410, 1.0525

Trading Tips

Sell Stop 0.9850. Stop-Loss 0.9970. Take-Profit 0.9800, 0.9700, 0.9600, 0.9535, 0.9500, 0.9400, 0.9300, 0.9200, 0.9000

Buy Stop 0.9970. Stop-Loss 0.9850. Take-Profit 1.0000, 1.0047, 1.0100, 1.0195, 1.0230, 1.0410, 1.0525