EURUSD – Weekly Outlook for 9th Sept 2022
Introduction
The forex broker is expecting the market to move strongly as the European Central Bank plans to make a 50basis point announcement during the meeting it will be having this week. The inflation level has affected the European market in the past months as the economic activity is struggling to stabilize.
As the trading week unfolds, we shall be paying attention to the fundamentals coming out from different quarters of the financial market.
EURO and US News
EUROPEAN CENTRAL BANK
The European central bank conference will be happening during the week when the president and the vice president of the ECB will be addressing investors, institutions, and Indian brokers about its monetary policy outcome and their decisions on the interest rates likewise on the economic outlook which will also influence the future decision.
Analysts expect the meeting’s outcome to be hawkish, which could point towards strength for the Euro.
US JOBLESS CLAIMS
The jobless claims in the United States of America from the department of labor will be looking at the report of people or individuals who officially fill in for unemployment insurance for the first time in the week. The labor market is correlated with consumer spending because it shows the economic health of the country.
The forex brokers, investors, and retail traders are following the developments concerning the level of unemployment because the committee on the monetary policy pays attention to the reports also.
The US dollar will be stronger if the outcome of the report shows that the outcome is lower than the forecast. The forecast for the jobless claim is 234K while the previous data was 232K.
EURUSD Technical Analysis
Weekly Chart Bearish Swing
Weekly Resistance Level: 1.04200, 1.0500.
Weekly Support Level: 1.01720, 1.01210
The ECB press conference that is expected to take place on September 9, 2022, is likely to attract more forex brokers as the decision of the Central Bank in Europe is expected to see the committee agree on the increase of its interest rate with 50 Basis points. The European market will be slow at the beginning of the trading week until the ECB announces its decision on the interest rate because investors are looking for timely opportunities and triggers to invest.
The US dollar has influenced the EURUSD pair in the last weeks as the price drops to the support zones of 0.99000, a breakout below the support level will take the price to the 0.98000 level as the trend continues in a downtrend.
Daily Chart Projections: Bearish,
Daily resistance Levels 1.02040, 1.03820, 1.01190
Daily Support Levels 0.99000,
Indian forex traders and other investors are waiting for the outcome of the ECB announcement to see if the Euro can find strong support for a reversal of the trend on the daily chart.
The 0.99000 is another sentimental level in the market because a breakout below the support will take the EURUSD pair into another bearish swing trend.
However, if the outcome of the meeting favors the Euro the EURUSD pair may bounce up from the zones to test the 1.01190 resistance zones.
H4 Intraday Chart Overview,
4-Hour Resistance levels 1.01190, 1.02040.
4 Hour Support levels 0.99030, 0.98600
From the H4 time frame, the EURUSD pair saw the Bears dominate the market from 1.03240 as of 11 August 2022 by taking the price down to the current low of the H4 market. The EURUSD is ranging on the H4 time frame waiting for a breakout scenario either to the upside or downside.
The strong outcome from the US economic calendar has been favorable to the US dollar, however, if the news from the ECB favors the Euro, we shall see the price of the EURUSD breakout above the ranging market and moves upward.
EURUSD Conclusion and Weekly Price Objectives
The EURUSD pair is Consolidating on the H4 time frame as the forex platform waits for the outcome of the major news that can shift the market’s sentiments from a downtrend to an uptrend or from an uptrend to a downtrend. The EURUSD pair is still in a downtrend and in a channel, it will need a strong fundamental for the price to break out of the channel.
As market participants look forward to the ECB conference, retail traders, Indian forex traders, forex brokers, investors, and institutions are watching the European market for an opportunity to move in their favor.
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