EURUSD Weekly outlook – 27th Jan 2021

EUR vs USD Forecast 

Introduction

The Euro has been less attractive for online brokers such as OlympTrade, as investors are diversifying their investment into safe-haven currencies due to the tension rising between Russia and Ukraine. 

As NATO allies build up for the crisis, the US military has stationed about 8500 troops on the alert if the need should arise.

EURO and US News

Consumer Spending m/m

The French consumer spending data is a primary gauge for market analysts to understand the overall economic activity within the country. The analysts review this report monthly. 

The outcome helps interested parties to know the changes in the adjusted value of all goods under-inflation that consumers have purchased.

The forecast is 0.1% while the previous is 0.8%

Core Durable Goods Orders m/m  

The core durable goods order is the purchase order that consumers placed with the manufacturing companies for the durable goods. The total difference between the total value of new purchase orders is ascertained but the transportation items are excluded like that of an aircraft. If the order is on the increase, the manufacturers will increase production activities by employing more workers to fill in the orders.

The previous data was 0.9% while the forecast is 0.4%.

EURUSD Technical Analysis

Monthly Chart Objective: Down Trend Buildups 

EURUSD monthly chart - 27th Jan 2022

 

Monthly Resistance   1.23496, 1.21500.

Monthly Support levels 1.17042, 1.11861, 1.06310.

Online brokers who short the EURUSD pair on 01 Sept 2021, broke the low of 1.17042 to trigger the bearish trend because a psychological zone has turned the trend around in favor of the sellers. The recent tension in the Euro block and that of the Russian oppression has sent some waves into the Forex market as investors are moving currencies into safe-haven. 

If the movement of the EURUSD pair can close below the 1.11861 level on the monthly chart, more online brokers, and institutions will open a short position and we shall see the price drop to the 1.06310 support zones. The forex market will attract the Bulls if the price of the pair cannot close below the support levels of 1.11858. The support level may be the reversal of price if the Bulls can resist the Bears’ pressures around the zone.

Weekly Chart Down Trend

EURUSD weekly chart - 27th Jan 2022

Weekly Resistance levels 1.16650, 1.19150

Weekly Support levels 1.15230, 1.16720

The weekly time frame shows candlesticks of EURUSD pair are creating a bearish flag chart pattern, this is a correction phase of the bearish trend. If the movement of price can close below the trendline connecting the lows on the chart, it will lead to a continuation of the trend.

At the end of the two-day meeting among the Fed, the update is expected to be released around 1900 GMT. Some analysts believed that the outcome of the Federal Reserve policy concerning the rate hike has been priced into the Forex. They expect the first hike to take place in March while the other hikes will be done as the year progresses.

Daily Chart Projections: Downtrend 

Daily Resistance Levels 1.15000, 1.16901

Daily Support levels 1.1500, 1.13000, 1.11857

The EURUSD pair is still moving in a channel as online brokers are waiting for the outcome of the Feds meetings. If the statement is in favor of the dollar, we shall see another bearish rally on the Forex market. However, if the outcome of the meeting won’t favor the US currency, we shall see a reversal pattern on the chart.

As the price broke out below the 1.13000 levels, the downward trajectory will likely continue to trade to the south which will expose other support zones like 1.11857.

Conclusion and Weekly Price Objectives

Analysts, investors, and online brokers are waiting to get the statement from the Federal Reserve’s meeting amid the Russia and Ukraine tension which is already reflecting on the price of oil. 

The forex pair is calm as at the writing of the report, we shall see some volatility as the news is read by the chairman of the committee. Traders and investors are searching for possible clues of the Feds meeting so that they can position their traders in the direction of the market. If the hike in interest rate is another important factor for the online brokers and the taper stimulus plan and implementation.

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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