On Tuesday, Euro weakened and hit a new short-term low of 1.1524. US dollar index rose to a high of 94.53, surpassing the one-year high of 94.50 reached at the end of September, because the market believed that the Fed would announce a gradual reduction of its large-scale bond purchase plan in November. So far, the ECB’s dovish stance have not changed and insist that inflation is temporary. Euro has fallen to its lowest level since May last year. European coal prices are currently hitting historical highs, and natural gas prices have quadrupled at the beginning of this year.
From a technical perspective, EURUSD continued to weaken and there is no sign of stabilization. The indicators are bearish across the board. H4 graph shows that the rectangle structure is broken, the downward trend is obvious, and the indicators are bearish. Overall, prioritise Sell on high within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1520.
Resistance：1.1570-1.1590-1.1640
Support：1.1520-1.1500-1.1450
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