EUR/USD – Weekly Outlook- 29 August 2019

EUR/USD Outlook & Technical Analysis for US Binary Options

Introduction

The EURUSD, the most traded currency pair is currently in a consolidation phase, following uncertainties with Brexit and the US/China currency war.

This week, we’ll be analyzing the crucial price dynamics of the EURUSD following a top down multiple time frame analysis approach for trader that will want to trade the pair on Nadex.com, a top binary options platform. 

Fundamentals

France Consumer Spending

France Consumer Spending evaluates the change in the value of all assets and consumer expenses. Consumer expenditures are accountable for a high percentage of economic activities.

A higher than anticipated reading should be considered bullish for the EUR, whereas a lower than assumed reading considered as bearish or negative for the EUR.

As of July 30, the latest data shows the actual reading to be -0.1%, while the previous figure was 0.3%. However, the forecast figure was pegged at 0.2%, hinting a bearish sentiment for the EUR.

U.S. CB Consumer Confidence

Conference Board (CB) Consumer Confidence the economy can predict consumer spending and estimates the confidence level of consumers in economic exercise. When readings are high, it suggests that consumers are more optimistic towards the economy. The indicator is a leading indicator in determining the general health of

A higher than expected reading shows a confident upbeat for the USD, where a lower than expected reading suggests an adverse effect for the currency.

Actual reading as of July 30 was pegged at 135.7, while the previous figure was 124.3. However, the forecast figure was pegged at 125.0, suggesting a slightly bullish sentiment for the USD.

EUR/USD Technical

EURUSD Long term Projection: Bearish and consolidating

The EURUSD has been in a long term bearish trend for over a year now since a breakdown of hidden bullish support on April 02 ’18. The pair has declined by about 8.61% from the failure of the support level 1.21542 on the monthly time frame.

Hopes of a price recovery in favor of the Euro failed to an opposite breakdown of the significant support of 1.11071 on May 01 ’19. However, the weekly time frame shows resilience on the part of the bulls. Let’s take a step lower on the time scale and take a peek on the patterns on the weekly time zone.

EURUSD: Weekly Chart 

EUR/USD Outlook - Weekly Chart - August 29

The rejection of bullish support on July 01 ’19, was a crucial pattern highlighting an increase in selling pressure that result in the collapse of the 1.11071 support mentioned on the monthly time frame.

A couple of weeks ago, the breakout of resistance level on 1.11622 confirms the anticipated regular bullish divergence pattern within the same time frame. If the MACD cross above the signal line, we’ll definitely be getting a confirmation of the divergence pattern. The current move can serve as earlier entry into an unfolding bullish trend.

EURUSD Medium Term Projections: Bullish

It has not been smooth sailing for the EURUSD on the mid-term time frames as the pair flags both rejection of resistance and support levels on the daily and 4hour time frames.  

EUR/USD: Daily Chart

EUR/USD Outlook - Daily Chart - August 29

Starting on the daily time frame May 31 ‘19, increase in demand for the Euro drove the price of the EURUSD upwards on major forex exchange broker platforms by roughly 2.17%. Bearish momentum increased for the major currencies Euro and USD on June 12 and July 01, as bullish supports give in to an increase in selling power.

EURUSD: 4HR Chart

EUR/USD Outlook - 4H Chart - August 29

An overview from the 4hour time frame reveals an early bearish trend that started from a breakdown of a collection of bullish supports on August 14. The price decline was about 1.34% before a regular bullish divergence got triggered on August 23.

At publication time, the EURUSD trades bellow a 1.11245 resistance level after an earlier collapse of support on August 26. The price may persist in the bearish state if the resistance level is not breached.

EURUSD Short Term Projections: Neutral 

EUR/USD: 1HR Chart

Although the 1hour intra-day time frame appears to be coming out of a price correction to resume the bullish trend, the bears go ahead to break significant support at 1.11060 at press time. The bulls could not advance beyond the 1.11245 resistance level.

Conclusion

The EURUSD across different time frames mainly the daily and 4hour, offers excellent swing trading opportunities. Going forward into the week, we expect a comeback of the bullish trend.

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