Technical Analysis: EURUSD

EURUSD increased slightly

On Tuesday, EURUSD increased slightly and closed to 1.0863 as the US dollar index fell.

The labor cost put pressure on the US dollar

According to the data provided by the US department of labor, US labor cost index, q/q (Quarter 4) decreased from 1.2% to 1.0%, the lowest since 2021. Affected by the data, the US dollar index continued falling and was around the 102 mark. It finally decreased by 0.14% and closed to 102.1.

Eurozone GDP increased by 0.1%

Although economists expected that economic recession would occur in Eurozone, Eurozone economy recorded the growth in the fourth quarter of 2022, which boosted the expectation that economic recession will not happen.

According to the data provided by the Eurostat on Tuesday, boosted by mild weather and the government’s support, Eurozone GDP, q/q (Quarter 4) increased by 0.1%.

Technically speaking, the market trend is bullish.

the chart of the day

On the chart of the day, EURUSD closed to the pinbar pattern yesterday, indicating that the market trend will be bullish in the short term. In terms of technical indicators, Vegas tunnel went upwards, which demonstrated that the market trend was bullish. Investors should focus on whether EURUSD will break through the support at 1.080. It will climb further if it is steady above 1.080.

4-hour chart

On the 4-hour chart, EURUSD increased and was prone to fluctuation. The market trend is bullish. In terms of technical indicators, KDJ went upwards after golden cross occurred, which demonstrates that EURUSD will rise further. EURUSD will rise further to the resistance at 1.110 if it breaks above the resistance at 1.093.

Key resistance: 1.093, 1.110

Key support: 1.080, 1.076

It is overwhelmingly likely that EURUSD will rise further as the US dollar falls and the Eurozone economic data is strong. Investors should focus on Eurozone CPI, y/y (January) during the day.