EURUSD – Weekly Outlook- April 24 2019

EURUSD  Outlook and Technical Analysis for US Binary Options

Introduction

The EURUSD pair is a general favourite among major currencies traded by speculators. This week unlike the last is not packed with a lot of fundamental announcements for the Euro, but we’ll look into the available, as well as go into details with the technical price patterns driving the trend of the pair. 

Fundamentals

EURO NEWS

Consumer Confidence

Consumer Confidence Index of the Eurozone is arrived at through questioning of households on the confidence level based on the prevailing economic situation and future developments. Growth of the index points to a confidence of the economy, meaning a positive for the currency.

10-Y Bond Auction

The German Federal Ministry of Finance places its debt securities at the 10-year benchmark. The Ten-year bonds are the standard securities to evaluate the market demand and also as an indicative yield. In comparison with previous auctions, a diminished yield shows a generally positive trend for the currency. The yield of this placement is the first value while the second shows the bid-to-cover ratio.

USD NEWS

The Richmond Manufacturing Index

The Richmond Fed Index is drawn based on a survey of manufacturing companies in the region. The survey assigns values to ascertain the economic condition of the region. Values higher than zero suggests that there is an improvement in conditions, while values less than zero reflect a decline of conditions. The indices have a little impact since the survey is limited to a region leaving other regions out of its coverage area.

Technical

EURUSD: Monthly Charts

EURUSD monthly chart - 24 April 2019

The above monthly chart overview still shows strong bearish sentiment for the EURUSD as the bears signaled a bearish pressure pattern in series with a collapse of bullish pressure. Let’s move a step lower to see the prominent patterns on the weekly chart.

EURUSD: Weekly Chart

EURUSD weekly chart - 24 April 2019

The weekly chart flagged a bullish normal divergence as discussed in a previous post. This setup was verified by a breach of bearish resistance on April 08 ’19 with support at 1.11838. The event of a bearish close below this significant support level will confirm a comeback for the bears and consequently a decline in foreign exchange of the EUR vs. USD.

EURUSD: Daily Chart

Scrolling two steps lower to the daily chart, reveals a collapse of bullish growth on April 16 ’19 with strong resistance at 1.13239. All attempts by the bears to close below this level was rejected and finally resulting in a price plummet of roughly o.78%.

Approaching what seems to be a previous double bottom support zone, the pair start to show a sharp recoil of the bearish descent.

EURUSD: 4HR Chart

Thursday, April 18 ’19 last week suggested an increase in strength of the Euro as critical resistance at 1.12478 was rejected. This slow price climb was not sustained as we’ll later find out from the 1hour chart point of view.

EURUSD: 1HR Chart

On April 22 ’19, the 1hour chart showed possibilities of a bullish rally following a breakout of bearish pressure which consequently left the support at 1.12359. This bullish price increase was rejected by an opposing failure of bullish growth at the 20th hour of the same day. The bearish campaign was further reinforced on April 23 ’19, finally causing the pair to crash by 0.48%.

Conclusion

Major consecutive candles of the EURUSD is projected on a quarterly time horizon, as a result, we are not shocked by the sudden increase in volatility and the swing trading opportunities presented on the daily, 4hour and 1hour charts.

Today April 23 ’19 at the fifteenth hour of the one-hour time frame, a breakout of bearish accumulation was later signalled to establish strong support at 1.11922 for projected price growth of about 0.4%.

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