EURUSD – Weekly Outlook for 2nd September 2021
EURUSD Forecast for Forex
We expect the OlympTrade platform to see high volatility this trading week as we expect the US economic calendar to have high impact news across the major pairs. Because of the rise of the variant cases in the US, the EU has to introduce new travel measures for individuals traveling into Europe from the United States of America.
EURO and US News
German Final Manufacturing PMI m/m
The German purchasing managers index is carried out among 400 managers who are asked to rate the business conditions in terms of employment, production, prices, supplier deliveries, and inventories, among others. Feeds from the managers are an early indicator of the economic health of the country.
An outcome above 50.0 shows an industry expansion while a figure below it shows contraction. 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 currency. The forecast is 62.7 while the previous is 62.7.
For this week, the percentage of the total workforce that is searching for employment actively shall be in focus compared to the previous month. If the number of unemployed is lower than the forecast is good for the currency. However, if the outcome is high than the forecast, it is not suitable for the US dollar. The data on unemployment is important feedback on the overall health of the economy. The forecast is 5.2% while the previous data was 5.4%
EURUSD Technical Analysis
Weekly Chart Bearish Swing
Weekly Resistance Level: 1.19049, 1.22254, 1.18000
Weekly Support Level: 1.16989, 1.16681
The Federal Reserve recently announced that it plans to wind down the stimulus program sooner and we might see this effect on the forex platform when the market participants react to the plan of the FOMC in days to come.
Long position traders on the EURUSD pair could close the week in their favor and also recovering the same distance they lost to the Bears. That action formed A railroad track candle which suggests Bulls are dominating the market because of the double bottom chart pattern at the support zones. If the bulls can find their momentum, we shall see the pair rise higher.
The COVID-19 cases are on the rise in some parts of the USA and many are still skeptical about the effectiveness of the vaccines since the early dose had negative effects on their patients. The US COVID-19 cases have led to a new traveling restriction for people coming from the USA into the EU zones.
Daily Chart Projections: Bearish,
Daily resistance Levels 1.18053, 1.19084
Daily Support Levels 1.17010, 1.17205, 1.16620
Long position traders were able to reject the bear’s pressure as the price of the EURUSD pair entered a psychological zone that saw the Bulls react quickly with great momentum. If the participants can close higher above the resistance zone of 1.18053, we shall see price testing the 1.19084 high in the future.
Market participants may be cautious of the new month’s saga that comes with high impart news which can destruct the forex platform when data from the US economic calendar is released.
H4 Intraday Chart Overview,
4 Hour Resistance levels 1.18100, 1.17792, 1.18599, 1.19018
4 Hour Support levels 1.16649, 1.17792, 1.17335
Previously, the EURUSD pair was creating a series of lower highs and lower lows before the trend reversed around the support zone of 1.16649 with a strong bullish engulfing candle on the 20th of August 2021 that showed that buyers have changed the direction of price.
The uptrend has been creating higher highs and higher lows pushing price up towards the recent high where the price is struggling to close above the resistance zone of 1.18100. If the price should breakout above the high, the uptrend will resume, which will expose the resistance level of 1.19018.
Conclusion and Weekly Price Objectives
The market participants will have to wait to clear the market as we expected strong fundamentals from the major pairs in the forex platform in few days. Feeds from the data will help investors, retail traders, and institutions to know the bias of EURUSD in the future.
Some groups of people are protesting the COVID-19 rule of enforcement because it is against their human rights. They believe the vaccines do not stop the infection rate, so why should it continue when those who were previously vaccinated are been infected again?