Daily Technical Analysis

Introduction: 

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

1. EUR/USD Analysis:  

News Summary: 

The European Central Bank will keep interest rates unchanged at next meeting, but there may not be any hint of interest rate cut. The reasons for keeping rates on hold has strengthened since September, when the bank raised its deposit rate to 4.0% and implied that it might pause its rate increase cycle. The ECB does not want to come across as dovish or sitting on the sidelines while inflation remains high.   

Trend Analysis: We can see EURUSD rebounded and then pulled back, the price is running below the 48 hours moving average on H4 chart. The current pessimism about eurozone may be peaking, as is the optimism about outperformance of the US economy. Owing to the strong US interest rate advantage, it would be premature to discuss a sustained rebound in EUR/USD. Hence the sell limit could be arranged, stop loss is compulsory.   

 Today's Key Price Levels: 

Key Support Levels: [1.0500] 

Key Resistance Levels: [1.0640] 

Pivot Points [1.0600]

2. Crude Oil Analysis: 

 News Summary: 

Oil markets underestimate the risk of further escalation in the conflict between Israel and Hamas. Oil price have so far been muted in response to rising tensions in the Middle East. Israel and Palestine conflict is severely undervalued, and current fundamentals are enough to justify a complete reversal of undervaluation this month. Lebanese Hezbollah has warned that it is ready to fully participate in the war in support of Hamas, and the risk of the situation escalating into a regional conflict is increasing.  

Trend Analysis: 

We can see crude oil continued to rebound after retracement and the MACD histogram bar and double line once again has formed top divergence structure on H4 chart. Many investors are reluctant to bet directly on crude oil but are actively bullish when crude supply is affected. The possible tactic is to set buy limit near 48 hours moving average, stop loss is necessary.    

Today's Key Price Levels: 

Key Support Levels: [87.00] 

Key Resistance Levels: [94.00]

 Pivot Points [88.70]