EURUSD – Weekly Outlook for 24th July 2021
EURUSD Forecast for Forex
Introduction
The U. S dollar has shown a sign of strength on the IQ Option platform as market participants expect the U.S economy to improve and become stable amidst the recent development of the variants.
The greenback recovered and climbed above the three-month peak compared to other major currencies as the US economy shows signs of improvement.
EURO and US News
German Flash Manufacturing PMI
The Purchasing managers in the manufacturing firms carry out surveys in the system to know the level of diffusion index in the industry as it relates to the business in terms of price, employments, new orders, supplier deliveries, and production.
They carried the survey out among 800 purchasing managers who are at the forefront of the manufacturing activities and hold the organization’s view of the economy because of the quick reactions of businesses to market conditions.
An output above 50.0 shows expansion in the industry, therefore a favorable outcome higher than the projected level indicates optimism towards the currency, however, a lower actual value could mean negative sentiment towards the currency. The previous data was 65.1 while the forecast data is 64.2.
Unemployment Claims
The jobless claim is an important issue for those steering the monetary policy of the country. Unemployment in an economy signal the health of the nation, it has a high correlation with the labor market and consumer spending. The report is released weekly as new individuals who filed for the unemployed insurance policy for the first time are recorded and filled.
A report that is higher than the forecast is good for the US currency but an outcome higher than the forecast is not suitable for the currency. The previous Jobless claims were at 360K while the forecast is 350K.
EURUSD Technical Analysis
Weekly Chart Bearish Swing
Weekly Resistance Level: 1.19740, 1.22670
Weekly Support Level: 1.16026, 1.17118
The EURUSD pair has been bearish for weeks after the short position traders could dominate the market from the resistance zones of 1.22670 when the Bulls failed to breakout above the zone. The short position traders need to close below the support levels of 1.17118 for the pair to experience another bearish run. The support level of 1.16026 is another psychological zone for the Bulls and they hope to push back the EURUSD pair if their momentum does not fail them.
The fear of Stagflation is a concern for investors as a resurgence in COVID-19 infection is on the rise which has slowed down the economy and is likely to increase the high unemployment rate if the crisis should escalate. President Joe Biden acknowledged that prices of goods and items are on the rise because of inflation but his administration will be vigilant to avoid another economic breakdown.
Daily Chart Projections: Bearish
Daily resistance levels 1.8472, 1.19961, 1.19761, 1.18407
Daily Support Levels 1.18407, 1.16972, 1.17700
The bullish push from the previous levels of 1.18407 will hold for a possible long position from the support levels of 1,16972 and 1.18407 to push back the price up. A close above the previous support turned into resistance (1.19961) will take the price to the resistance zone of 1.22646.
H4 Intraday Chart Overview,
4 Hour Resistance levels 1.18929, 1.18743, 1.18494, 1.19739
4 Hour Support levels 1.17660, 1.18473
The Bulls were able to take the EURUSD pair up from the previous support level of 1.18473 with anticipation of closing higher above the levels of 1.19739. However, the bullish run was short-lived before the Bears took over from the Bulls to close below the 1.18473 zones taking the price to a lower low of 1.17660. A close below the support will take the pair lower on the time frame.
Conclusion and Possible Price Objectives
. Investors and traders are concerned about the market. If we see another slow growth in the global economic recovery which will generally affect the financial market, Equities, and stocks among others.
A callout for more COVID-19 vaccines is on the rise as more countries are hoping to control the spread as they open up their economic activities.
The EURUSD pair is still bearish as long as the trend has not changed on the daily chart. If the price should close lower than the support zone of 1.16972, we shall see another major drop in the trend.
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