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EURUSD – Weekly Outlook for 24th June 2022

Introduction

Forex brokers, investors, and retail traders have seen how the Greenback has attracted more funds into their economy by increasing the interest rate over some time. The US dollar has been able to recover the distance it lost to the Euro since the covid-19 crisis which saw the euro hit the 1.23110 mark. As the price is around the psychological zone, the forex brokers and traders should wait for a breakout below or we get a rejection around the zone.

EURO and US News

German Flash Manufacturing PMI

About 800 managers in the manufacturing industry are asked to respond to the survey data carried out by the market analysts on the businesses in terms of employment, production, prices, new orders, and inventories among other respondents. If the purchasing manager’s data should indicate points above 50.0, it shows expansion in the industry but a figure below 50.0 is an indication of contraction in the industry.

The forecast is 54.0 while the previous is 54.8.

US JOBLESS CLAIMS  

The Federal Reserves pay attention to the level of unemployment in the country because it is a strong factor for those handling the monetary policy and it shows the health of the economy when consumers spending increases in the labor market.

The department of labor releases the data showing the number of individuals who officially applied for the insurance policy for the first time during the week. If the numbers are lower than the forecasted it is good for the US currency but a higher data above the forecast is not suitable for the currency. 

The previous data was 229K, while the forecast is 227K.

EURUSD Technical Analysis

Weekly Chart Bearish Swing

EURUSD weekly chart - 24th June 2022

Weekly Resistance Level: 1.07870, 1.14950.

Weekly Support Level:  1.03522

The EURUSD pair has been making successive lower highs and lower lows since 24th May 2021 till date. The pair has made about 13% move to the 1.06540 level from the resistance level of 1.22545. the trend of the pair remains bearish until the market can establish a strong reversal pattern.

The Bullish Indian forex traders, retail traders, and investors who wish to take a buy position will need to see that the 1.03522 support level can reject the seller’s pressure around the zone.

The weekly chart is forming a double bottom pattern which is a reversal pattern on the time frame, a confirmation will be necessary for the forex brokers if they must take a bullish rally in the forex market.

Daily Chart Projections: Bearish,

EURUSD daily chart - 24th June 2022

Daily resistance Levels 1.07400, 1.06403

Daily Support Levels 1.18469, 1.03780, 1.03500

The EURUSD pair has been moving in a bearish channel on the daily trendline and the price has been respecting the trendline connecting the resistance zones. If we see the price breaking out above the channel the trend may reverse to the upside o the market.

The 1.07867 resistance zone is the neckline and the psychological level for the trend to reverse to the upside if the Bulls can build the momentum for a bullish run on the daily chart.

H4 Intraday Chart Overview, 

4 Hour Resistance levels 1.07800, 1.06260

4 Hour Support levels 1.03550

The 1.07800 level had two confluence zones as the EURUSD pair was not able to break out above the confluence zones which led to the fall of price as the bearish traders continue to push the price down.

The Bullish surge of 16th June 2022 shows that Bulls are filling their orders for the price to go up. If the current support zone can hold, we are likely going to have the double bottom pattern on the H4 time frame that will push the price higher.

EURUSD Conclusion and Weekly Price Objectives

The market will be bracing up for the testimony of Powell the Fed chairman that will be coming up during the trading week. analysts say that the Fed has decided to cause a recession to combat the high level of inflation in the economy.

The price of the EURUSD pair has been consolidating between the 1.06300 resistance zones and 1.03520 support levels on the H4 time frame. A breakout to the upside will reverse the downward trend but a breakout below will lead to a continuation of the downtrend.

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