The Euro has been highly sought after during the Asian market and we can see the currency gain strength from the DAX 30. It will interest the IQ Option broker to see how the pair will perform during the week as the FOMC meeting ends in some days to come.
EURO and US News
The German Prelim GDP
This is data is released 45 days after a quarter-end. The previous result was 0.3% while the forecast is -1.5%. This result shows the changes in the value of goods and services that inflation has affected within the economy.
Two versions of the data are released 10 days apart, the Preliminary and the Final. The preliminary has the most, and it serves as a gauge to measure the health of the economy. An outcome higher than the forecast is good for the currency.
The USD CB Consumer Confidence the forecast is 112.0 while the previous data was 109.7. They carry the survey out within households showing the overall economic activities among consumers.
Over 2500 households were asked to rate the current economic condition in terms of labor, business, and how the future outlook may be. A result that is greater than expected is good for the US dollar, but a lower outcome won’t favor the currency.
EURUSD Technical Analysis
Monthly Chart aim: Bullish and slowing
Monthly Resistance levels 1.25559, 1.21544
Monthly Support Levels 1.10292
The second quarter of the year started on a positive note for the EURUSD pair as the bulls could push the price up towards the resistance levels of 1.21544. If the Bulls can close above the resistance zones, we are likely to see the bullish rally continue.
However, the resistance levels are going to be a hard nut for the bulls to crack because of the psychology behind the zone that gave the U.S dollar strength was a zone that had previously rejected the bulls’ rally. We expect another rejection of the bulls run again in the coming months.
Weekly Chart Bullish
Weekly resistances 1.23496, 1.22430
Weekly supports 1.17042, 1.08966
Despite the COVID19 waves going on in Europe, there is a strong sign that the zones are recovering gradually amidst the pandemics. We can see that for three weeks the bulls have dominated the market. We expect the bullish trend to continue to the resistance zones of 1.22430 and if the momentum is strong,
However, the resistance must first be taken out before the bulls can have a free run. The resistance zone remains valid and there is a possibility of the Bears dominating the market from the zones as the online brokers await the FEDs decision in days to come.
Daily Chart Projections: Bullish
Daily Resistance 1.21896
Daily Support 1.19524
The indicator is in an overbought zone and we are expecting the bulls to lose some of its momentum in some days to come as the FOMC will dominate the market events.
The indecision candles show that some traders are neutral, while some online brokers are liquidating their long positions until the chairperson of FOMC speaks concerning the clues relating to the US economy.
Conclusion and Weekly Price Objectives
We know that the Euro zones have been battling the third wave of COVID-19, and the distribution of the vaccine had not been encouraging as well. The upcoming central bank meetings will reflect on the risks relating to COVID-19 and the international businesses, which may bring in different measures for the economy.
The DAX 30 is struggling to cross its current level, which may weaken the Euro if the sellers can dominate the 15000-level mark on the DAX30, this make the EURUSD pair go down for a bearish trend.
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Tagged with: EUR/USD