EURUSD – Technical Analysis for US Binary Options
The weekly charts of major currencies of the FX market are currently in a trend, indicating a strong U.S. dollar. The EURSUD in particular, oscillates between a weekly resistance and support channel, as well as a 4hour rising triangle. Join us, as we carry out an overview on the major fundamental and technical events that are at play for the week.
Consumer Price Index (CPI)
The US Department of Labour Statistics will release the Consumer Price Index (CPI) which is a measure of price movement. Volatile products such as food and energy are omitted in order to achieve an absolute estimate. A high reading is usually perceived to imply bullish sentiment for the USD, while a low reading is seen to imply negative sentiment.
U.S Monthly Budget Statement
Today, a Monthly Budget Statement will be released by the Financial Management Service. This is a review of the financial activities of federal entities, distributing officers, and Federal Reserve banks. A positive budget statement upon release of the statement is regarded as bullish for the USD. A negative value showing government debt is seen as bearish.
Euro Industrial Production
Eurostat will be releasing the Industrial Production. Production volume of factory and manufacturing industries are shown. An uptrend is viewed as inflationary which may anticipate a rising interest rates. Normally, a great industrial production may also produce a bullish sentiment for the EUR, while weak industrial production is seen as a bearish view.
EURUSD: Weekly Chart
The weekly chart of the EURUSD triggered a hidden bearish accumulation pattern on 23 July, resulting to a 3.0% price drop.
A Pin Bar candle pattern was fired on August 13 with a strong support at 1.13008 forcing price to move by 3.0% in the opposite direction. This bullish rally was negated by a bearish dark cloud cover candle pattern, again forcing price to move 3.30% south where it triggered a double bearish accumulation pattern with support at 1.13019.
At the moment, the pair is trapped between a support and resistance level of 1.3019 and 1.15001. A bullish regular divergence pattern is also in view, to be confirmed by a golden cross of the MACD oscillator or a breakout of the resistance level of 1.15001.
EURUSD: 4HR Chart
Traders of US binary options would find the 4-hour chart attractive as the waiting time is short compared to the daily and weekly time frames. A bullish regular divergence was triggered on November 01, and it was confirmed by a breakout of bearish accumulation thereby strengthening the foreign exchange of the Euro. This divergence pattern leads to a 1.30% increase in the EURUSD while the pair moves in a rising channel.
The channel later failed to a breakdown of the channel support, with a price plummet of 1.54%. On the 13 November, price broke out of a hidden bearish accumulation pattern after the decline, and got price oscillating within a triangle pattern. Ditto, a breakout or breakdown of the rising triangle should signal a sustained bullish oulook.
The current movemet of the EURUSD is most favourable for swing BinaryCent traders . The monthly chart of the ERUSD is mean reverting, and flowing in a downward trend, after the bearish hidden divergence.
Tagged with: EUR/USD