Triggered by the FOMC Minutes, promising Eurozone Data and finally U.S. Markit Service and Manufacturing PMI which were below the market’s expectations; EURUSD ended week 1.19290.
Thursday’s minutes from the latest ECB policy meeting have prolonged this lead, revealing that policymakers broadly agree on the extension of the bank’s quantitative easing ( ) scheme.There was, however, some debate over the decision to keep asset purchases open-ended.
The upcoming week will be very busy in means of fundamentals of both economies with US Core PCE outstanding ahead of December FED’s meetings.
Short-term trend is but we need to keep in my mind that FED rate hike is set to announce in December, and more importantly, will or how long ECB’s Draghi let the EURO gain more strength.
EURUSD Forecast and Technicals:
On the weekly chart; EURUSD is above 50,100 and 200. is in the territory but not overbought.
On the ; 1.19600 ( Fibo Retracement 127.20% ) is the resistance. Above 1.19600, 1.20250 and 1.20900 will be the next possible targets.
gives overbought signals. 1.19000 and 1.18800 possible pullback levels on Monday.
1.18800 – 1.18600 regions is the support.Three factors can cause a breakout this week. An incredibly positive US Data, Draghi and a political chaos in Europe.