On Thursday, USD surged to a new high, and Euro continued to decline hitting a low of 1.1562. The U.S. dollar is supported by the sharp rise in U.S. Treasury yields, and the market expects that the Fed will start to scale back its monetary stimulus plan from November. Germany's rapid formation of an alliance and some signs of the European Union indicate that it will jointly respond to the current energy crisis through large-scale new fiscal stimulus. The trend of excess savings and deflation in the Euro Zone will continue for some time, and Euro will continue to be under pressure.
From a technical perspective, the daily candle closed bearish with an upper and lower shadow and EURUSD has formed 5 consecutive bearish candles. The market shows a strong bearish signal. H4 graph shows that EURUSD made a breakthrough downwards, BOLL turned downards, and MACD accelerated below the zero axis. Overall, prioritise Sell within the fluctuation zone, do not consider Buy. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1610.
Resistance：1.1590-1.1610-1.1650
Support：1.1550-1.1500-1.1450
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