EUR/USD Outlook & Technical Analysis for US Binary Options
The EUR vs. USD on both Forex and US binary options brokers shows a solid bullish outlook, haven broke key resistance levels across different time horizons.
In this post, we’ll be taking a closer look at these setups and other interesting fundamental drivers of the exchange rate.
Should we expect a further hike in the exchange rate? Read on to find out more.
Eurozone Industrial Production MoM
Industrial Production evaluates variations in the total inflation-adjusted value of output produced by mines, manufacturers, and utilities.
Traders can expect a bullish trend when the released data is higher than anticipated, and a bearish trend if the published data is less than forecasted.
Traders can expect a bullish trend for the USD as proven by the latest release on November 13, which shows the actual reading to be 0.1%, previous reading to be 0.4%, and the forecast data to be -0.3%.
U.S. Crude Oil Inventories
The Crude oil inventory of the Energy Information Administration’s (EIA) is a weekly evaluation of any variations in the number of barrels of commercial crude oil possessed by firms in the United States within the week.
A decrease in crude inventories represents a weaker demand, which implies a negative trend for the currency. This also applies if the decline in inventories is less than expected.
An increase in crude inventories represents a higher demand for oil products, which implies a positive trend for the currency. This also applies if the decline in inventories is higher than expected.
Traders can expect a bullish trend for the USD as proven by the latest release on December 04, which shows the actual reading to be -4.856M, previous reading to be 1.572M, and the forecast data to be -1.73M.
EURUSD Long term Projection: Bearish and consolidating
The EUR/USD, after a collapse of the June 24 ’19 support 1.13442, plunged lower by about 3.07% before signaling an accumulation of buy orders on September 09 ’19 and setting support on 1.09268.
The bears couldn’t move lower than the significant buy area 1.09268 and as a result, had to soar higher.
Last week’s breach of the bearish resistance of 1.10322 launches a bullish campaign into this week.
EURUSD Medium Term Projections: Bearish
The recent break of resistance on the weekly chart coincides with a regular bullish divergence setup on the daily time frame, precisely on November 29 ’19.
We expect a slowing in the forex exchange rate of both major currencies upon entering the 200-daily Moving Average area, where the M.A. serves as resistance.
Notice how the bullish and bearish divergence patterns signal perfect entry points, going long on November 29, 14:00, and short-selling on December 06 06:00.
The EUR/USD at both long and short entry setups could not breach either of the 1.09812 support and 1.11165 resistance for a considerable percentage increase or decrease in price.
In summary, the EUR/USD is expected to close bullish this week, considering that the EURGBP recently signaled a regular bullish divergence pattern on the 4hour time frame.