EUR USD Daily Technical Forecast – February 09, 2017
EUR USD Technical Overview
Yesterday Close 1.0698
Today Open 1.0698
Day’s Range 1.0678 – 1.0701
52 wk Range 1.0339 – 1.1616
1-Year Change – 5.36%
EUR USD Technical Forecast
Our Possible trading range for today 1.0678 – 1.0701
|Support 1: 1.0655||Resistance 1: 1.0713|
|Support 2: 1.0636||Resistance 2: 1.0732|
|Support 3: 1.0607||Resistance 3: 1.0761|
EUR USD Fundamental Analysis
EUR USD continues to consolidate but without any specific direction as it continues to be unable to take advantage of the weakness in the dollar to make any kind of significant progress. It has been finding the region around 1.0705 especially difficult to break open and this has helped the dollar to continue to survive despite its weakness. Under normal circumstances, such weakness in the dollar would have led to a large scale correction in the dollar value but the weakness in the other currencies has helped it to stay afloat so far.
The euro has been suffering from a bout of weakness over the past few days as the risks and uncertainty continue to exist in the Eurozone. There has been a lot of talk about whether the euro will survive a few years down the line and whether any more countries would follow the example of the UK and leave the Eurozone and other such fears. Though the ECB and other leaders have been trying to put such talk to rest, they have been unable to do so and the effect of that can be seen in the euro. There are also elections that are due in France and Germany during the course of the year and in each of these countries, we have strong candidates who want their respective countries to exit from the Euro. This has caused a bit of panic in the European markets as well as the history over the past 1 year has shown that people around the world like to see change even if it means taking a huge risk as far as the outcome of the elections are concerned. All of these factors are keeping the pressure on the euro and it continues to consolidate and trade in a weak manner.
Looking ahead to today, we have the unemployment claims data from the US and we also have a couple of Fed members speaking at different forums. This should bring in some volatility in the currency markets which has been a bit docile since the beginning of this week.