Bullish EUR/USD chart corroborates November seasonality
Nov 1 (Reuters) -EUR/USD usually climbs in November and the price action at the beginning of this month points to a continuation of this seasonal trend.
A study of EUR/USD's seasonal performance for each November since 2000 shows it has posted a positive return in 15 of the last 24 years, or 63% of the time. However, seasonality should not be considered in isolation and needs to be corroborated by other factors.
EUR/USD has managed to rise and close above the 1.0869 Fibo, a 23.6% retrace of the 1.1214 to 1.0762 (Sept to Oct) EBS drop, increasing the bullish market structure. It has also managed to vault to the 200-DMA, now at 1.0870. That increases the scope for bigger gains to the 1.0935 Fibo, a 38.2% retrace of the same 1.1214 to 1.0762 fall.
EUR/USD has risen this week, buoyed after data showed euro zone inflation accelerated more than expected in October.
For more click on FXBUZ
Daily Chart: https://tmsnrt.rs/4fLanlN
Seasonality Chart: https://tmsnrt.rs/4hrAuj8
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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