EUR/USD Forecast | Daily Technical Analysis for January 24, 2017
EUR/USD Technical Overview
Yesterday Close 1.0766
Today Open 1.0766
Day’s Range 1.0745 – 1.0772
52 wk Range 1.0339 – 1.1616
1-Year Change – 0.34%
EUR/USD Technical Support and Resistance
Our Possible trading range for today 1.0745 – 1.0772
EUR/USD forecast: EUR/USD pair possibly will find its immediate support at 1.0705. If, market breaks the first support then it will go for the following support to test. Following supports are 1.0684 and 1.0649.
On the other side, we found immediate resistance at 1.0775 from our EUR/USD technical analysis. If, market breaks the primary resistance level then, for sure market will go for the new resistance level 1.0796 and 1.0831.
EUR/USD Fundamental Analysis
The EURUSD pair continues to trade strongly as the dollar weakness continues across the board. When the new year began, everyone expected the dollar strength to return. After all, the dollar had strengthened even when the US elections threw up an unexpected victor in Trump and so it was only natural that after a small correction during the holiday period in December, we should expect status quo and expect the dollar to start going back up again.
The market is still uncertain on how to price the US dollar. On the one hand, we have the Fed which has made it clear that it is likely to hike rates at least twice or thrice during the course of the year. This is extremely positive for the US economy in general and the US dollar in particular and should have led to some serious strength. But on the other hand, we have the new Trump administration taking charge and the market wants to adopt a wait and see approach to see how it all pans out with regards to the economic, fiscal, trade and foreign policy of the new government. The market does not know what to expect and is very uncertain in investing either in support or against the dollar and it is this uncertainty that we have been seeing over the last few weeks.
Looking ahead to today, we have the PMI data from Germany and France and we also have the SC ruling in the UK on its Eurozone membership, which is likely to impact UK a lot but will also have a indirect impact on the Euro. Trade carefully in these volatile markets and make sure that you have tight stop losses.
Along with eur/usd technical analysis forecast, keep eye on the following economical events.
Upcoming Economic News: (GMT +2)
·10:00am EUR French Flash Manufacturing PMI
EUR French Flash Services PMI
10:30am EUR German Flash Manufacturing PMI
EUR German Flash Services PMI
11:00am EUR Flash Manufacturing PMI
EUR Flash Services PMI