EUR USD Forecast for the Week 21st November, 2016
The EUR/USD had a strong negative candle. Market is testing the 1.05 level almost immediately. If we break down below there, as per the EUR USD forecast the Euro will very easily reach the parity level over the next several weeks.
The US yields continued to rise on Friday as well. as it has been the case over the past couple of weeks and this has enabled the USD to continue to gain strength. No currency has been able to survive this onslaught and it has all been one way traffic for the past couple of weeks. This has hit the euro very hard especially as the QE continues to take its toll on the euro. Neither Draghi, nor the ECB has not yet signaled any kind of tapering or stopping of the QE as yet and this, along with the USD strength, has caused the EURUSD pair to crash through 1.0800 during the last week and it also crashed through 1.0600 and sits at a tough support region at around 1.0580 to end the week.
The region between 1.0500 and 1.0600 has been known to be a tough support region but it all depends on the yield.
Upcoming economic events to the coming week, we have Draghi making a speech on Monday but we will not be looking forward too much to it as he does not have the habit of addressing monetary policy unless absolutely necessary. So far, no one in the ECB has expressed concern about the value of the euro and so we do not expect him to say much. We also have the FOMC statement on Wednesday where the market would expect further hints, signs and confirmation of a rate hike in December. If this happens, we can expect the dollar strength to continue.
EUR USD Technical Forecast:
Previous week close: 1.0607
Current Week Open: 1.0582
Today’s Market Range: 1.0579 – 1.0614
52 wk Range: 1.0538 – 1.1616
Support and Resistance Weekly Forecast:
S 1: 1.0486
S 2: 1.0384
S 3: 1.0201
R 1: 1.0771
R 2: 1.0954
R 3: 1.1056