EURUSD, GBPUSD, AUDUSD new gains due to weak dollar
EURUSD chart analysis
Looking at the EURUSD chart on the daily time frame, we see that the pair made a good shift yesterday from 1.15250 to the current 1.16100, and we are now testing a 20-day moving average. If the dollar continues to weaken, the pair can very easily continue up towards the next resistance in the zone 1.16500-1.17000. More broadly, we are still in a bearish trend as long as we are in this downward channel. So for a stronger bullish trend, we need a break above the top line of the channel, and only after that can we expect rest to the previous high at 1.19000. For the bearish trend, we need a continuation of the negative consolidation that will direct the EURUSD pair towards the previous low at 1.15250.
GBPUSD chart analysis
Looking at the GBPUSD chart on the daily time frame, we see that the pair made bullish impulses that managed to climb to 32.8% Fibonacci levels at 1.37300. We are currently testing this Fibonacci level and 50-day moving average. For further continuation, we need a break above this level, and after that, the next upper resistance is our zone around 50.0% Fibonacci level at 0.38300. Our additional resistance is the 200-day moving average and the upper trend line. For the bearish trend, we need to withdraw from this current resistance zone. A further withdrawal of GBPUSD leads us to the previous resistance zone at 23.6% Fibonacci level at 1.36000, supported by a 20-day moving average.
AUDUSD chart analysis
Looking at the AUDUSD chart on the daily time frame, we see that the pair found support in early October at 0.72000, and after that, we started the bullish trend. We are currently at 0.74100. Now we can expect to visit the previous resistance zone at 0.75000 soon, and additional resistance above awaits us in the 200-day moving average. For the bearish trend, we need a negative consolidation with the goal of testing the zone again at 0.73000, and if AUDUSD fails to find support there, and easily then we can slip from the previous support levels on the chart 0.71000-0.72000.
Market overview
The best German economic institutes upgraded the projection of economic growth for 2022 but reduced the forecast for the current year, citing shortcomings in supply in the manufacturing sector.
According to the economic forecast for the fall of 2021, the gross domestic product will grow by 2.4 percent this year instead of the 3.7 percent estimated in April.
The projection for 2022 has been revised to 4.8 percent from 3.9 percent. For 2023, a growth of 1.9 percent is expected.
Private spending is likely to return to normal over the next year. Production capacity will also increase again with a reduction in supply bottlenecks, the institutes said. Employment is expected to continue to rise, and the unemployment rate is expected to fall to 5.7 percent this year and 5.3 percent next year.
Inflation is projected to remain high for now. The institutes forecast consumer price growth of 2.5 percent in 2022 and 1.7 percent in 2023, after 3 percent this year.
The economy ministry said economic development is likely to be slow in the fourth quarter. The Ministry expects that industrial production will remain slow and slow in the coming months.
