EURUSD – Weekly Outlook for 24th September 2021
EURUSD Forecast for Forex
Introduction
The US dollar is likely to grow in strength this week on the forex platform as the Federal Reserve plans to announce the stimulus tapering at the end of its two days meeting.
Top brokers in India will experience some volatility when the committee announces its decisions.
Some analysts think that the tapering program won’t be announced until November.
EURO and US News
German Flash Services PMI m/m
The survey carried out among the German purchasing managers index was about 800 purchasing top managers who rated the business conditions in terms of production, prices, supplier deliveries, employment, and inventories, among others.
Feeds from managers’ gives clue to the nation’s economic health. They are in a better position to access the quick reactions of businesses and the market conditions it faces.
An output that is over 50.0 points towards industry expansion while output with a lower figure shows contraction in the system. The forecast is 60.3 while the previous is 60.8.
FOMC Economic Projection
The FOMC report talks about their views and projection concerning inflation and the growth of the economy in the next two years and more. The individual members of the committee will also highlight their forecast on the interest rate during the report of the meeting.
The FOMC Economic projection meeting comes up 4times a year. A more hawkish report is excellent for the US currency but less hawkish news is not suitable for the currency.
EURUSD Technical Analysis
Weekly Chart Bearish Swing
Weekly Resistance Level: 1.19049, 1.22254, 1.18000
Weekly Support Level: 1.16989, 1.16681
During the week, the Federal Reserve members shall hold a meeting regarding the tapering of the stimulus program. The meeting will take place for two days before the Chairperson makes the announcement.
Some Hedge funds managers like J.P Morgan Asset management are concerned about the increase in the number of COVID-19 infection rates and they think the Federal Reserve decision on tapering will be worrisome.
Daily Chart Projections: Bearish,
Daily resistance Levels 1.18053, 1.19084
Daily Support Levels 1.17010, 1.17205, 1.16620
The recent shift of momentum to the downside on the daily timeframe has brought in more pressure for the buyers as the last area of support was tested again by the sellers. The selling pressure may resume if the current pullback cannot close above the 1.17700 regions.
However, the market is about to enter a consolidation. If the sellers cannot overturn the support zone into another level of resistance, the price shall spring up from the zone.
H4 Intraday Chart Overview,
4 Hour Resistance levels 1.18500, 1.19000, 1.17500
4 Hour Support levels 1.16670, 1.17000,
Technically, the EURUSD pair is on a downtrend having seen the H4 creating a series of lower highs and lower lows after the resistance zone of 1.9000 rejected the Bulls rally. The reversed trend is pushing the price back to the support zone of 1.16650 with strong bearish momentum.
Forex traders and other market participants will have to wait for the psychological level of the EURUSD pair to be controlled either by the sellers or the buyers. If the Bulls can break out above the trend line connecting the highs on the H4 time frame, we may see the long position traders dominate the market for an uptrend.
Conclusion and Weekly Price Objectives
The market participant, institutional traders, and other investors are seeking shelter in safe-haven currencies as a Chinese property developer Evergrande may likely default on his part with some investors.
COVID-19 infection rate concerns some analysts because of the recent spike in numbers as they wait for the decision of the Federal reserve on the monetary policy. They expect the bank will still keep the interest rate low when the meeting is over.
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