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EURUSD – Weekly Outlook for 27th Jan 2021

EURUSD Forecast for Forex

Introduction

The FOMC meeting has put investors, Institutions on the edge of the chair as they wait for the outcome of the meeting. 

The US dollar has been making good strides recently when you look at the IQOption platform, also the Russia and Ukraine crisis that has made investors move their funds to the safe haven.

EURO and US News

SPANISH UNEMPLOYMENT RATE  

The National Statistics Institute released the data for the Spanish unemployment rate. They captured the number of unemployed people who are actively searching for work during the previous quarter and the figures are released in percentage form. 

Unemployment rate is an important factor in looking at the overall state of the economy because of the relationship it has with the labor market.

The forecast is 14.2% while the previous is 14.6%.

Unemployment Claims

The data collected is based on the numbers of people who officially filled in for unemployment insurance for the first time in the recent week. Some analysts see the report as a lagging indicator, it is also a major concern for the monetary policymakers when the number of employed is high.

The Forecast is 260K while the Previous data was 286K.

EURUSD Technical Analysis

Weekly Chart Down Trend

EURUSD monthly chart - 27th Jan 2022

Weekly Resistance Level: 1.16921, 1.16090

Weekly Support Level: 1.12346, 1.11861

The global equity market started with a shake-off as the demand for digital class assets drops while oil and dollar demand are on the rise because of the possible attack of Russia on Ukraine. The November 08, 2022 candlestick was the breaker that broke the low of 1.15626 creating another bearish swing. As the price is in the correction phase, we expect the price to break the trendline connecting the lows for a continuation pattern.

Indian forex traders who had short positions open must have enjoyed the gains made by the US dollar against the other major on the weekly time frame. Bearish momentum persists as rising demand for the Greenback recently forces the EURUSD below the bullish divergence trend line.

We expect to see lower exchange rates into the close of the week.

If the Bullish attempt should fade out, we shall see more selling pressure pushing the price down to close below the support levels of 1.12346 which will take the price of the pair lower. 

Daily Chart Projections: Bearish,

EURUSD weekly chart - 27th Jan 2022

 

Daily resistance Levels 1.13835, 1.16000

Daily Support Levels 1.12350, 1.12866

The EURUSD pair saw price retesting the previous support level that price broke (1.15008) before the bearish run continued. If the price closes below the trendline the bearish run will continue. The US dollar is strengthened due to the tension between Russia and the Western part of Ukraine, also the hawkish sentiment from the Federal Reserve. Investors are looking out for safe-haven currencies that can protect their investments.

The bearish rally may continue to favor Indian forex traders who are shorting the EURUS pair ass the momentum continues to rise for the short position traders who are holding on to their position.

 H4 Intraday Chart Overview, 

4 Hour Resistance levels 1.13688.

4 Hour Support levels 1.13023, 1.12865

The EURUSD pair has retested the 1.13688 level twice on the H4 chart and the zone keeps pushing the price down. A close below the 1.12865 support level will take the price of the pair lower.

However, the bears are getting stronger as the price continues to break out lower and close below the previous lows. The bias is bearish for the EURUSD pair on the H4 time frame and we expect the trend to continue in that direction until we see a definite reversal pattern.

Conclusion and Weekly Price Objectives

Indian brokers, other market participants will be following the meeting of the Fed as the two-day meeting starts during the week because it will be based on the interest rate hick from March in regards to their plans to reduce their Treasuries and mortgage debt which have to shoot the balance sheet above $8 trillion. 

Data revealed that some investors have cut their net long position on the dollar while the added a net $2.6 billion of euro positions.

 



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