EUR USD Forecast for the Week 14th to 18th November, 2016
The EUR/USD had an extraordinarily volatile week and eventually closed lower. As a result, we ended up forming a very negative candle and I believe that it is only a matter of time before we break down below the 1.08 handle. If we break through there, the pair should then reach towards the 1.05 level which was massively supportive in the past.
Donald Trump is the next president of the US. The shock decision initially pushed the dollar lower, allowing EUR/USD to break resistance, but the move seemed to lack real justification, sending the pair around 400 pips to the downside. Disappointing data from Germany played a minor role in weighing on the euro.
This Week we have a couple of speeches from Draghi and a testification by Yellen and we also have a range of economic data including retails sales and CPI from the US and GDP from Germany. With Trump becoming President, there is a slight doubt in the markets on whether the Fed would continue to go ahead with the rate hike in December, as is expected by the markets. So far, there has been nothing to the contrary but the speeches and the data from the coming week would help to determine that and the future direction as well.
EUR USD Technical Forecast:
Previous week close 1.0854
Current Week Open: 1.0835
Today’s Market Range: 1.0773 – 1.0840
52 wk Range: 1.0538 – 1.1616
Support and Resistance Forecast:
S 1: 1.0812
S 2: 1.0768
S 3: 1.0725
R 1: 1.0900
R 2: 1.0944
R 3: 1.0987