Analysis and Forecast EUR / USD - Weekly review (29.08-02.09)
On Friday, there was a strong declines. Currency Pair stopped at the support of 1.1179 (38.2% abolition of inheritance from 1,1617- 1.0909. The end of the week there was a little higher at 1.1195.
Looking at the chart EURUSD in the coming hours, we can assume that the new beginning of a new week, he should bring a growth rebound Friday session. Therefore, one should expect increases toward resistance levels are located at 1,1217-45. Strong resistance will be here downtrend line (the level of 1.1617), which is located at 1.1217 and coincides with the 23.6% of the abolition of Friday's declines. In my opinion, the strength of the upward movement, will determine the future direction of the currency pair discussed. I will not be original if I say that the weakness of demand at these levels will lead to attacking the supply side. Therefore, it should be emphasized that, if the demand mean a return toward the last peak, at 1,1217-45 resistance must be overcome. In the case of defense by supply these levels, Eurodollar will head towards the last low of 1.1180. A pessimistic defeat of support will signal that the increases were finished and return to the falls towards lower price levels.
Analyzing the Eurodollar in a broader aspect, you should think about whether the recent rally from 1.0909 to the 1.1367 level was not only a corrective movement, falls from 1.1617 to 1.0909 level. In this variant could return to decline as the traffic growth reached 61.8% fibo level, which is usually the maximum range of the correction, because the movements of corrective rarely tolerate higher values. Certainly, maintaining the eurodollar rate below 1,1217-45, will support this thesis.
Summary:
At the moment, sentiment is starting to change and investors begin, look favorably towards the US dollar. Last occurrence Janet Yellen is confirmation of this. However, everything will depend on the future of US data that may (in the case of weaker readings), quickly put out the enthusiasm of the market that prevailed during Friday.
The key for the future direction of the Eurodollar will be data from the US.
Looking at the chart EURUSD in the coming hours, we can assume that the new beginning of a new week, he should bring a growth rebound Friday session. Therefore, one should expect increases toward resistance levels are located at 1,1217-45. Strong resistance will be here downtrend line (the level of 1.1617), which is located at 1.1217 and coincides with the 23.6% of the abolition of Friday's declines. In my opinion, the strength of the upward movement, will determine the future direction of the currency pair discussed. I will not be original if I say that the weakness of demand at these levels will lead to attacking the supply side. Therefore, it should be emphasized that, if the demand mean a return toward the last peak, at 1,1217-45 resistance must be overcome. In the case of defense by supply these levels, Eurodollar will head towards the last low of 1.1180. A pessimistic defeat of support will signal that the increases were finished and return to the falls towards lower price levels.
Analyzing the Eurodollar in a broader aspect, you should think about whether the recent rally from 1.0909 to the 1.1367 level was not only a corrective movement, falls from 1.1617 to 1.0909 level. In this variant could return to decline as the traffic growth reached 61.8% fibo level, which is usually the maximum range of the correction, because the movements of corrective rarely tolerate higher values. Certainly, maintaining the eurodollar rate below 1,1217-45, will support this thesis.
Summary:
At the moment, sentiment is starting to change and investors begin, look favorably towards the US dollar. Last occurrence Janet Yellen is confirmation of this. However, everything will depend on the future of US data that may (in the case of weaker readings), quickly put out the enthusiasm of the market that prevailed during Friday.
The key for the future direction of the Eurodollar will be data from the US.