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The EUR/USD ended last week's trading at the 0.97398 level, following a strong selling pressure on Thursday and Friday.   After trading within striking distance of the 1.00000 le...

EUR/USD: Weekly Forecast Breakdown -ForexIntels

EUR/USD: Weekly Forecast Breakdown -ForexIntels

The EUR/USD ended last week's trading at the 0.97398 level, following a strong selling pressure on Thursday and Friday.
 

After trading within striking distance of the 1.00000 level early in the previous week, the EUR/USD began to decline again on Thursday and before the weekend.
 

The EUR/USD ended last week's trading at the 0.97398 level, following a strong selling pressure on Thursday and Friday.

Friday's stronger-than-anticipated U.S. employment figures bolstered the Federal Reserve's rhetoric from the previous day about the need to maintain a hawkish stance on interest rate policy.

The growing cost of energy has not benefited the EUR/USD, since inflation remains Europe's foremost concern.

In terms of interest rate policy, the ECB continues to lag behind the majority of other major central banks, with the exception of the Bank of Japan.

In the last week of October, the European Central Bank will have an interest rate policy meeting during which they are likely to raise borrowing rates.


This week, as the price of crude oil remained elevated, the ECB's belief that inflation would begin to drop in the coming months was dealt a significant blow.
 

Last week's preliminary results were fanciful. Maybe for the EUR/USD
 

On Tuesday and Wednesday of the previous week, the EUR/USD traded within sight of the 1.00000 level, partly due to the expectation among financial institutions that the U.S. Federal Reserve would adopt a more dovish interest rate policy.


However, by the conclusion of the week, when it became evident that this was only wishful thinking, the EUR/USD took a bearish swing. The 0.99000 barrier was breached on Thursday, and the trading never recovered to trade above this level for an extended period of time.
 

It appears that financial institutions are beginning to acknowledge the existence of a new price range below 1.00000. If the ECB hikes rates at the end of October, it will remain below the U.S. Federal Reserve's constructed curve.


This reality may fundamentally keep the EUR/USD below parity in the near future; if significant Forex traders continue to believe the ECB will maintain a more dovish stance on interest rate policy owing to debt concerns in the European Union, positive EUR/USD prospects will suffer.
 

  • The failure of the EUR/USD to trade above the 1.00000 price during the previous week indicates that a reduced trading range for the pair is becoming a reality for the time being.
     
  • A perception that the ECB is more dovish than other major central banks is keeping the EUR/USD weak.


Support and Resistance for the EUR/USD Could Represent an Attractive Betting Opportunity
 


If the EUR/USD suddenly begins to sustain a range between the 0.96000 and 0.98000 levels, technical traders may find this to be a very fascinating value chart.


The 0.97000 level should be examined early in the week; if global anxiety persists, this might lead to more EUR/USD selling.


On September 28th, the EUR/USD traded at a low of almost 0.95350, which may be seen as oversold.
 

EUR/USD Weekly Outlook:


The EUR/USD speculative price range is 0.95100 to 0.99300.

 

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This following week will likely be marked by market volatility. If existing support levels are unable to stem the torrent of selling observed late last week, the EUR/USD may easily go below the 0.9700 threshold.


Considering the depths reached by the EUR/USD just two weeks ago, the concept that 0.96000 is oversold may show to be untrue.


While optimists dominated the markets at the beginning of last week, apprehensive circumstances have reemerged with relative ease, and the worst of these conditions may not be gone.


It would not be a technical surprise if the EUR/USD pair fell below the 0.96000 threshold and challenged the 0.95000 level.
 

Traders who believe the EUR/USD is oversold and wish to purchase should proceed with caution. While optimistic speculators may be proven accurate over the long run, behavioral sentiment is holding down the EUR/USD, and this trend may not reverse in the immediate future.


When purchasing the EUR/USD, one should have reasonable goals and not be excessively ambitious.

Having failed to rise beyond 1.00000 in the previous trading week, it is unlikely that this will occur in the next week.


Traders may target gentle reversals upward that test the 0.99000 level, but anything significantly above this in the next days would be somewhat unexpected.

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