EURUSD – Technical Analysis for US Binary Options
- 1 EURUSD – Technical Analysis for US Binary Options
Major currencies in the foreign exchange market trade bullish this week and the Euro which was already relinquishing power to the buck is not left out of the pack. Read on as we dive into the major fundamental and technical indicators moving the EURUSD.
Unemployment Rate: European Monetary Union
The Unemployment rate, a leading indicator of the European Economy is scheduled for March 01 ’19. This indicator as computed by Eurostat divides the number of unemployed workers by a total of the labor force (Civilians only). An increase in the figure depicts the weakness of the European economy, while a decrease highlights the strengthening of the economy, and consequently the Euro. The consensus and previous values are set to 7.9%.
Europe Consumer Price Index
The Eurostat is scheduled to release the Consumer Price Index for the Euro Zone on March 01 ‘19, which measures variations in the price of goods/services and measure differences in purchasing trends and inflation. A higher than expected value projects a hawkish position and consequently a bullish Euro. A negative value, on the other hand, is viewed as dovish and bearish for the Euro. The previous value came out 1.4% as we look forward to the actual release.
ISM Manufacturing PMI
This is an important fundamental indicator that highlights business conditions in the manufacturing sector. The actual result is scheduled for release on the first day of March ’19, of which a value greater than 50 is viewed positively for the USD, while a result less than 50 is seen as negative.
EURUSD: Monthly Charts
Nothing much has changed on the monthly chart since our last review of this pair. The price from the above time frame still trades below the months open and maintains a bearish pressure formation which will be confirmed at the end of the month. In the event of a pattern transition from bullish to bearish accumulation, we look forward to a decline in the foreign exchange in favor of the USD.
EURUSD: Weekly Chart
Prior to getting enclosed within a resistance at 1.15001 and support at 1.13428, the EURUSD breaks below the support on February 04 ’19, confirming shorts with a regular bearish divergence formation. This week, however, we begin to see a rejection of the divergence, and a price correction before the major decline comes up.
EURUSD: Daily Chart
As shown above, the bearish fakey pattern initiated a 1.8% price decline on 31 January ’19. This bearish swing fails to a breakout of hidden bearish accumulation on 16 February ’19, leading to a 0.95% price surge.
EURUSD: 4HR Chart
From the 4hour chart, the current bullish trend was confirmed by a formation of regular bullish divergence on 14 and 15 February ’19. These patterns were double-checked by a bullish fakey pattern on 15 February ’19, resulting in a price close above the MA-65 on 19 February ’19 14:00.
EURUSD: 2HR Chart
The 2hour chart similar to the 4hour chart initialized the bullish trend by triggering a regular bullish divergence in combination with a bullish accumulation on 15 February ’19 16:00. Price, for the most part, continued to trade above the moving average and later triggered a breakout of bearish accumulation on 22 February ’19.
This week, though in a bullish trend from the lower daily, 4hour, and 2hour charts, the higher monthly chart shows possibilities of triggering a bearish pattern after the last day of the month 28 February ’19. The monthly opening price is often viewed as resistance or support depending on the price location. In the current scenario, it is seen as resistance. For now, the pair is undecided and a breakout of either the monthly bullish or bearish accumulation support or resistance should be more decisive.
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