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Introduction to EUR-USD The EUR-USD currency pair commonly referred to as the “Fiber” is the most traded forex pair globally, representing the exchange rate between the Euro and the US Dollar. It reflects the relative economic strength of the Eurozone compared to the United States. Given its high liquidity and low spreads, the EUR/USD is […]

The post EURUSD Forecast: Sideways Movement Ahead of ECB Signals appeared first on UnitedPips Ltd.

Daily Pivots: (S1) 1.1590; (P) 1.1623; (R1) 1.1667; More… Intraday bias in EUR?USD stays mildly on the upside for 1.1724 resistance. Firm break there will solidify the case that fall from 1.1917 has completed as a three-wave correction. Further rise should then be seen to retest 1.1971 high. On the downside, however, break of 1.1561 […]

The post EUR/USD Mid-Day Outlook appeared first on Action Forex.

The US 500 recovered after a decline. The US 500 forecast for today is positive.

US 500 forecast: key trading points

• Recent data: ISM non-manufacturing employment in the US came in at 48.2 in October
• Market impact: the data is moderately positive for the stock market

US 500 fundamental analysis

The ISM Non-Manufacturing Employment Index stood at 48.2 points, compared with the forecast of 47.6 and the previous reading of 47.2. Although the indicator remains below the neutral 50.0 mark, formally signalling contraction in the services sector’s employment, its uptrend suggests gradual improvement. For the US stock market, this indicates that the pressure on the labour market from the services sector is easing: the rate of job reduction is slowing, which lowers the likelihood of a sharp macroeconomic downturn or a hard-recession scenario.

For the US 500, which reflects the broad market, the effect of the indicator can be characterised as moderately positive. Since a large portion of index components belongs to services and consumer sectors, stronger-than-expected employment data (while still below 50.0) reduces the risk of a sharp decline in corporate profitability while supporting expectations of gradual rate cuts.

US 500 technical analysis

The US 500 index corrected towards the 6,655.0 support level, with resistance formed at 6,915.0. Quotes rebounded from support and are now rising within a broader uptrend, with the next potential upside target near 7,085.0.

The US 500 price forecast considers the following scenarios:

• Pessimistic US 500 forecast: a breakout below the 6,655.0 support level could send the index down to 6,540.0
• Optimistic US 500 forecast: a breakout above the 6,915.0 resistance level could drive the index to 7,085.0

Summary

In the short term, the US 500 will likely show lower volatility and maintain an upward or sideways trend. The index’s next direction will depend on confirmation of current signals by upcoming employment and inflation data. From a technical perspective, the US 500 may rise towards 7,085.0.

Open Account

The USD/JPY pair trades in positive territory near 153.70 during the early Asian session on Monday. The Japanese Yen (JPY) retreats from an over one-week high amid the uncertainty over the timing of the next interest rate hike by the Bank of Japan (BoJ).

The Bank of England (BoE) maintained the Bank Rate at 4.0% at today’s policy meeting, but more members voted for a rate cut than the consensus forecast anticipated.