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EURUSD, GBPUSD, AUDUSD daily view at the end of the week

Pair EURUSD yesterday managed to break the previous October resistance zone to 1.16700 and make a new higher high at 1.16930. After that, we have a pullback, first during the Asian session and the European session at the current 1.16530.

Bullish scenario:

Now we need a new positive consolidation again that will steer us back to 1.17000.
We have support in MA20 and MA50 moving averages.
The next higher resistance awaits us in the upper trend line, and the MA200 moving average at 1.17200.
With the breakthrough above, we return to the September movement zone.

Bearish scenario:

We need further continuation of non-negative consolidation and a break below the MA20 and MA50 moving averages.
Then we test the first support at 1.16000.
Further, the break below brings us to 1.15690, and the next potential support is at 1.15220 October lower low.

GBPUSD chart analysis

Pair GBPUSD is still in consolidation around 1.38000, still testing the October resistance zone. The movement during October takes place in a growing channel, and based on that; we can say that we are in a bullish trend.

Bullish scenario:

We need a break above 1,38500 to make this month’s higher high on the chart.
We have additional support in moving averages on the bottom line of the growing channel.
The next upper resistance awaits us in the zone of 1.39000, and the breakthrough above us climbs to 1.40000 psychological area of resistance.

Bearish scenario:

We need a break below the MA20 moving average and the channel’s bottom line, after which the pair could test the support in the MA50 at 1.37000.
A further break below brings us to 1.36500, then to 1.36000, and next the October lower low to 1.34330.

AUDUSD chart analysis

Pair AUDUSD yesterday managed to make a new October higher high at 0.75550. Now we have a smaller pullback to 0.75320. Today is Friday, so that we can expect reduced volatility in the market.

Bullish scenario:

Throughout October, the pair has support in the MA20 and MA50 moving averages.
Looking at Fibonacci, we have support by a 50.0% level at 0.74972.
Our next first upper resistance is the upper line of the growing channel.
The break above climbs us to 61.8% Fibonacci level at 0.75900, and we are approaching the previous high from July.

Bearish scenario:

We need negative consolidation and a pull below the MA20 moving average and 50.0% Fibonacci levels.
A further break below drives us down to potential support at MA50, and then the next is at 38.2% Fibonacci level at 0.74000.

Market overview

The eurozone economy continued to grow during the summer as activities recovered after quarantine due to the coronavirus. Still, inflation also exceeded previous expectations, leaving the European Central Bank with an increasing headache. Growth has jumped as consumers return to stores and outlets. Still, many businesses have been unable to keep up with demand, further pushing up prices that have boosted rising commodity prices.

The eurozone economy that shares the euro grew 2.2 percent faster than expected in the third quarter, which was its fastest-growing pace in a year, and set a course to reach pre-crisis size before the end of the year.

Rapid growth, coupled with rising oil prices, has helped push inflation to 4.1% this month, more than double the European Central Bank’s target. It equaled the highest level of all time for the data series launched in 1997.

“Growth will be much slower in the last quarter as supply chain disruptions, slowing global demand, and labor shortages hamper production,” said Andrew Kenningham of Capital Economics.

A key ECB survey released on Friday showed an expected growth of 4.5% in 2022, suggesting that rapid expansion will continue at a more moderate pace. Inflation is also likely to slow, although there is growing uncertainty about how fast and how far.

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