EURUSD – Weekly Outlook- January 10 2019

EURUSD – Technical Analysis for Binary Options Brokers

Introduction

Of all the major currencies, the EURUSD is the most liquid and therefore attracts a lot of new and veteran traders from Nadex . This is because large institutions and speculators use the foreign exchange market for hedging against future risks. Join us as we take a look at the technical and fundamental events at play for the EURUSD pair.

Fundamentals

ISM Non-Manufacturing PMI

The actual value for the ISM Non-Manufacturing PMI came out less than the previous value; 57.6 compared to 60.7 of previous. This indicates a growing but slowing U.S economy. This news released on Monday 7 January resulted in a series bullish closing bars on the hourly chart of the EURUSD.

President Donald Trump is scheduled to speak on Wednesday.

We should anticipate a sway on financial markets if his speech is directly linked to economic matters. A suggestion filled speech will boost risky demands for commodities and stocks, and consequently, strengthen the USD.

ECB Monetary Policy Meeting Accounts

This meeting which is scheduled for Thursday 10 January 2019 intend to look into the detailed record of Governing Board’s recent meeting. It gives traders clues on where they may likely set interest rates.

Technical

EURUSD: Monthly Chart

EURUSD Weekly Analysis - January 11 2019

Making reference to the above monthly chart, we’ll notice that coming from a bearish trend triggered by a failure of hidden bullish accumulation, the EURUSD pair signals an opposite bullish accumulation pattern at this month’s opening price.

The current bullish accumulation pattern establishes a support level at 1.12154. Price quickly went south at this month’s open, but as it approaches last month’s open, we begin to see a change in direction towards the upside.

EURUSD: Weekly Chart

The weekly chart quickly shows bullish sentiment by triggering a bullish regular divergence pattern via a crossover of the MACD oscillator. This pattern triggered last year December 24, threw light on the direction of EURUSD probably for the first few weeks of 2019.

EURUSD: Daily Chart

On November 15 ’18, bullish divergence pattern was triggered in succession with bullish accumulation. This pattern sets a support level at 1.12746, and the price has not been able to close below the level on this time frame.

A failure of bullish accumulation on the January 2 ’19 gave early signs of a possible continuation of the monthly bearish trend. The fundamentals released during this week was not favorable for the USD, hence last month price open became support.

EURUSD: 4HR Chart

A bearish regular divergence pattern on the above 4hour chart, in combination with a dark cloud cover candle pattern, saw the EURUSD making a 1.08% price decline. The bearish move was stopped in its traps as an opposite bullish engulfing in combination with a bullish accumulation pattern propped price back up.

EURUSD: 2HR Chart

Suitable for trading on most binary options brokers is the 2hour chart considering a low maximum adverse excursion from signals of the accumulation patterns. On January 2 ’19 10:00, the price plummets by 1.09% so a put-option trade from that point will put a trade in the money in no time. 

The bullish patterns on the January 6 and 7 2019 also offer great call-option trades with success.

Conclusion

Although the EURUSD shows bearish sentiment from a monthly perspective, the weekly chart, on the other hand, reflects bullish and the current fundamental events align with this. All things being equal, from our point of view, we expect the pair to make another 2% rise from the current price. A bearish close below the weekly chart support will nullify the bullish campaign.

 

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