EUR-USD Price Forecast- Euro Upside Could be Temporary

In this article, We have learned about the "EUR/USD Price Forecast: EUR Upward May Be Temporary".

EUR/USD Analysis

  • Germany's trade balance data reflects concerns about growth
  • European Central Bank officials in the spotlight today
  • Long wick candles indicate more downward trends

 Euro Foundation BackDROP

Euro in Last Week's Non farm Payroll (NFP) Afterwards, a small bid was made on Monday morning, and the report showed that the market rebounded after the US dollar. With the celebration of Labor Day in the United States and Canada, today's trading volume may be relatively moderate. Having said that, there have been several events in the eurozone that could affect the market throughout the day, starting from Germany's trade balance and slowing exports (see economic calendar below), highlighting the concerns of the largest economy in the eurozone about economic growth. The result was a decrease in the trade balance figure to 15.9 billion euros The spokesperson for the central bank will be the focus of today, with the spokesperson for the European Central Bank planning to speak, including President Christina Lagarde. Over the weekend, the European Central Bank's Wen Shi reiterated his hawkish stance, and it is interesting to see if today's speech follows a similar viewpoint.

The Euro/USD Economic Calendar (GMT+02:00)

This may be the last opportunity for the European Central Bank to raise interest rates at its September meeting in the face of a slowdown in the economy, but market pricing seems to be inclined to pause (see table below), with a probability of+/-76%.

Probability of European Central Bank interest rates.

Transaction Intelligence - Register for DailyFX Newsletter.

Get timely and eye-catching market reviews from the DailyFX team.

Technical Analysis

EUR/USD Weekly Chart

The above weekly euro/dollar is currently sandwiched between the 50 week moving average (yellow) and the 200 week moving average (blue), with the candle from the previous week growing a wick (red) Closing. Traditionally, this will point to a subsequent decline and may coincide with weekly closing below 50 week MA

EUR/USD daily chart

Chart compiled by Warren Venketas, IG.

Short term daily EUR/USD price trend is still below the 1.0800 psychological handle, with bears staring at the low swing of 1.0767.

Resistance level:

  • 1.0834
  • 200 day moving average (blue)
  • 1.0800

Support level:

  • 1.0767
  • 1.0700

IG CLIENT sending time data: mixed

IGCS shows that retail traders are currently not net long positions in euros/dollars, and 71% of traders currently hold long positions (as of the writing of this article). Download the latest sentiment guide (below) to learn how daily and weekly position changes affect euro/dollar sentiment and prospects.

If you want to learn more about foreign exchange trading, please click on:

TRADING FOREX GBP/AUD

Related Posts