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EURUSD – Weekly Outlook for 15th October 2021

EURUSD Forecast for Forex

Introduction

The trading week will react to the disappointing data of the US Non-farm payroll released last week. As the week begins, we shall see how market participants would behave on the OlympTrade forex platform as they watch how the Federal Reserve will react to the low US job reports during the next meeting.

EURO and US News

GERMAN ZEW ECONOMIC SENTIMENT 

They carried the survey on German Institution among 275 analysts and investors, which shows the economic health of the Eurozone who were asked some questions to rate the economic outlook for the Eurozone in the relative 6th months. 

The ZEW is a leading indicator for Germany’s economic trends and the investors and analysts are informed on the changes in the market while their sentient is an early signal about the economic activity in the future.

An output that is above 0.0 shows optimism in the industry, while output with a lower figure shows pessimism in the system. Therefore, if the outcome of the report is higher than the forecast, it is good for the currency, but if the actual is lower than expected; it is not suitable for the Euro currency.

The forecast is 23.7, while the previous is 26.5.

Unemployment Claims

The data is a lagging indicator for some market analysts. The numbers of unemployed individuals is significant for the overall economic health of the country. Consumer spending is highly correlated with the labor- market. The number of unemployed individuals who filed for insurance for the first in the new week. 

If the projection is higher than the forecast, it is not suitable for the currency, but a lower forecast is good for the currency.

The Forecast is 315K while previous data was 326K

EURUSD Technical Analysis

Weekly View: Down Swing

EURUSD weekly chart - 14th October 2021

Weekly Resistance Level: 1.19049, 1.22254, 1.18000

Weekly Support Level: 1.16989, 1.16681

Indian forex traders saw a deep in the US dollar index as the NFP was a disappointment because it fell below the expectations of the market participants. This made the previous candle close to a Doji candle. However, the trend remains bearish on the forex platform as you can see the swing push lower. 

The psychological zone on the weekly chart is 1.16000 level. A breakout below will expose the 1.14000 support zones.

Maybe during the week, we may see the price push back against the US dollar from the 1.14890 levels. A close above the 1.16652 level will push the price high towards the 1.19150 resistance.

Daily Chart Projections: Bearish,

EURUSD daily chart - 14th October 2021

 

Daily resistance levels: 1.17703, 1.19184, 17000

Daily Support Levels 1.17000, 1.15290

The EURUSD pair bearish run continued when the price finally broke out of the 1.17000 support level with a strong candlestick. However, the price started the bearish run when the resistance zones of 1.19148 had a spinning top to reverse the bull’s swing from the zone. The bears could breakout below some supports levels and turning them to resistance zones on the forex platform.

The recent support level of 1.15290 is the only zone the Bulls have at the moment as the trading week resumes. If the Indian forex traders who wish to go long on the pair should see any bullish opportunity during the week, they may open and hold their position.

H4 Intraday Chart Overview, 

4 Hour Resistance levels 1.18000, 1.17000, 1.17500, 1.5840.

4 Hour Support levels 1.15370, 1.14880, 

The EURUSD pair kept its bearish run since the price failed to close above the resistance of the 1.17500 mark. After the market chart created a series of lower highs and lower lows, the price entered a range structure between the high of 1.15840 and low of 1.15370, as at the writing of the reports. 

A close below the support will push the price lower and a close higher than the resistance of 1.15840 will take the price to 1.17000. The market remains heavily bearish and we may see the pair going down in some days’ time, except we see a major reversal.

Conclusion and Weekly Price Objectives

The market participant and investors trading on the forex platforms will be monitoring the Federal Reserve monetary policy in the coming weeks as they wish to reduce the monthly bond, the taper programs once the committee is convinced that the economy has recovered in a significant way.



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