Daily Technical Analysis

Introduction: 

Welcome to our daily technical analysis of the financial markets, focusing today on EUR/USD and AUD/USD. Let's dissect the latest news, market trends, and crucial price levels to watch out for.  

1. EUR/USD Analysis:  

News Summary: 

Eurozone economic data is continued weakness that will be acknowledged in December. But investors still believe that the European Central Bank contraction is excessive, and the euro zone is forecasted to fall into recession this quarter or next quarter. As a result, the ECB is expected to begin cutting interest rates earlier and more aggressively than currently market expectations.   

Trend Analysis: The EUR/USD rebounded upward after correction on H4 chart. However, the Eurozone economy faces stagnation and downside risks in the next few quarters. We can see EUR/USD resilience following the October data update based on relatively stable guidance, but if there is a more dovish rates turn ahead, the euro may struggle to maintain its upward momentum. As a result, selling tactic could be used, stop loss is mandatory.  

Today's Key Price Levels: 

Key Support Levels: [1.0470]

 Key Resistance Levels: [1.0700] 

Pivot Points [1.0630]

2. AUD/USD Analysis:  

News Summary: 

In the past year, 20 listed companies on the Australian Securities Exchange have collapsed, a significant increase from the same period last year. In addition, several companies including large companies in the ASX300 index, are in worrying financial condition. Construction, retail, hospitality, and manufacturing are industries that will be greatly affected by the current economic situation. Yields on Australian government bonds are also falling, indicating a lack of investor confidence in Australia, and the US dollar is also reaping benefits from Australian dollar to some extent due to higher interest rate from the Federal Reserve.  

Trend Analysis: 

We can see AUD/USD has rallied and the 0.6275 level has been proven to be important support point, acting as the staged bottom of the market. A rebound from this point could provide investors unique opportunity, but the presence around the 0.6400 level adds an additional resistance, reinforcing the view that the market will continue to face upward pressure. So, the selling or sell limit is acceptable way for trader, stop loss is necessary.   

Today's Key Price Levels: 

Key Support Levels: [0.6260] 

Key Resistance Levels: [0.6420] 

Pivot Points [0.6370]