EUR/USD – Weekly Outlook- 13 August 2019

EUR/USD Outlook & Technical Analysis for US Binary Options

Introduction

The long-anticipated bullish recovery of the most liquid currency pair EUR/USD continues to fail to sharp selling pressure on BinaryCent binary options platform, with uncertainties on when the rollercoaster will end. Recent reports from the Wall Street Journal highlight that the Fed may be reducing liquidity risk crisis by adopting countercyclical buffers.

Read on as we analyze the significant technical pattern and leading fundamental drivers of the EURUSD exchange rate. 

EURUSD Fundamentals

EURO NEWS: Eurozone GDP

Gross Domestic Product (GDP) gauges the yearly shift in the inflation-adjusted amount of goods and services generated by the economy. It is the widest indicator of the level of economic activity and the essential index of the health of the economy.

When the reading is higher than expected, it translates a positive/bullish trend for the EUR, while a less than expected index translates a negative/bearish for the EUR.

Latest data released on July 31, shows actual reading to be 0.2%, while the previous data was 0.4%. With the forecast reading was at 0.2%, the indicator hints a bearish trend for the Euro.

U.S. Building Permits

Building Permits evaluates the difference in the number of new building permits issued by the government. They constitute a significant indicator of the level of demand in the housing sector.

When the reading is higher than expected, it usually translates a positive/bullish trend for the EUR, while a lower than expected index often translates a negative/bearish for the EUR.

Latest data suggests a bullish sentiment as the previous data is pegged at 1.299M, while actual and forecast readings are pegged at 1.220M and 1.300M respectively.

EUR/USD Technical

EURUSD: Monthly Chart

EUR/USD Outlook - Monthly Chart - August 13 2019

Last month’s bearish close of 2.60% dashed all hopes of an earlier anticipated bullish trend from a breakout of bearish resistance (1.13239). Although the EURUSD appears oversold, the current bullish rise in August may be the beginning of a long term bullish trend. 

EURUSD: Weekly Chart

EUR/USD Outlook - Weekly Chart - August 13 2019

At the level of a weekly time frame, the EUR/USD is held within the range of both bearish and bullish divergence patterns on July 01 ’19 and August 05 ’19.

The recent break above resistance (1.11622) reinforce the regular bullish divergence pattern, and we should expect a further increase in the exchange rate of the Euro and dollar as major currencies in the forex exchange market.

A price close below the 1.10269 support signals an automatic exit of positions.

EURUSD: Daily Chart

EURUSD Outlook - Daily Chart - August 13 2019

Earlier attempts by the bulls to restore the upward trend of the EUR/USD on July 10 failed to a collapse of support (1.11934) after a hidden bullish divergence pattern on July 22.

The previous hidden bullish divergence trend line currently serves as resistance at press time as the price chart form a collection bearish resistance bars.

A price close beyond the trend line infers an extra increase in the exchange rate.

EURUSD: 4HR Chart

On July 31 ’19 00:00, a hidden bullish divergence pattern resumed the price descent of the EURUSD into the oversold area. 

Upon exiting the oversold zone by a cross of the RSI above the level-30 on August 01 08:00, the EURUSD resumed a bullish rally that saw the price blazing through the bearish resistance trend line on August 05 into the overbought area.

With the price trading within a symmetrical triangle, a break above either resistance or support may initiate a bullish or bearish trade.

Conclusion

With the daily and weekly time frame showing bullish sentiments, we look forward to entering long positions on the EURUSD, using a breach of the significant support (1.10269) as a call for an automatic exit.

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