EURUSD – Weekly Outlook for 7th January 2021
EURUSD Forecast for Forex
The New year has started and the market is still uncertain because the forex platform has not been volatile since the US Thanksgiving holiday. The FOMC is having a meeting this first trading week and the US Non-farm payroll release will be out during the week.
Market participants will want to know the outcome of the FOMC meeting and the impact of the Non-farm payroll on the forex platform before decisions are taken,
EURO and US News
ITALIAN MANUFACTURING PMI
The survey on Italian Purchasing Managers was carried out among 400 respondents to rate the levels of businesses and their conditions relating to the employment conditions, production levels, prices, new orders, and inventories. The outcome is released during the first business day of a new month based on the survey of the purchasing managers in the manufacturing industry.
When an outcome that is higher than 50.0 is gotten, it means that there is an expansion in the industry while a lower figure means contraction.
The forecast is 61.2 while the previous is 62.8.
The data is seen as a lagging indicator for some forex analysts. The number of unemployed persons is significant in the economic health of the country. There is a level of correlation between the labor- market and consumer spending. The percentage of the unemployed workforce who are seeking work is collated.
If the percentage outcome is higher than the forecast, it is not suitable for the currency, but a lower outcome than the forecast is good for the currency.
The Forecast is 4.1% while Previous data was 4.2%
EURUSD Technical Analysis
Weekly Chart Bearish Swing
Weekly Resistance Level: 1.16921, 1.16090
Weekly Support Level: 1.12346, 1.11861
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. The short position holders made about 5.6% from the 6th of September 2021 weekly till the 22nd November 2021.
You can see some bullish build-up from the support levels of 1.12346, if the momentum is strong, we can see price retest the 1.16921 resistance zones for a breakout above or for rejection. 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,
Daily resistance Levels 1.13835, 1.16000
Daily Support Levels 1.12350, 1.12866
The EURUSD pair remains bearish as the run has been consolidating for days.
The bearish run will continue if the price can close below the support levels of 1.12350.
Indian forex and other investors have been watching the pair since the price has not gone out of the range.
Anytime the price reaches the buyers push the price towards the 1.13835 levels the selling pressure pushes it back towards the support levels of 1.12350. A close below the low will expose the lower zones on the daily chart. If the support zones continue to hold and we see a major reversal pattern, the buyers may take the price higher towards the 1.16000 resistance levels.
H4 Intraday Chart Overview,
4 Hour Resistance levels 1.13961.
4 Hour Support levels 1.12206.
The EURUSD pair is in a consolidation state since the price dropped. We can see that the EURUSD pair has tried to recover severally from the fall on the H4 time frame but it is always met by a strong resistance around the 1.13961 zones.
If the Indian forex traders can get a breakout above the resistance during the trading week, the price of the EURUSD pair will likely surge high to the next resistance level on the daily chart. Likewise, if the price should close lower than the current support zone, we shall see another major fall in EURUSD price favoring the US dollar.
Conclusion and Weekly Price Objectives
Investors, Indian brokers, and other market participants will be watching the reaction of the market on the forex platforms when the first FOMC meeting will be released and the US non-farm payroll and unemployment rate data will be released also. These are strong fundamentals that will likely drive the market in its direction for the first quarter of the new year 2022.