Last Updated on September 23, 2021
The FOMC officials are meeting during the week to deliberate on the interest rate, the inflation levels, and also the tapering stimulus plan. PocketOption brokers, investors, and other market participants will follow the reports released by the committee to find out the plan of the bank and how it influences their decisions.
The European President Christine Lagarde Speaks
German Flash Manufacturing PMI m/m
An outcome from the manufacturing services that are above 50.0 shows an expansion in the industry, while output with lower data shows contraction in the industry system.
They carried surveys among 800 purchasing top managers who rated the business conditions in terms of production, prices, employment, supplier deliveries, and inventories, among others. Managers are those individuals who have early access to market conditions and how it reacts to their businesses. This approach helps to identify the economic state of the country.
The forecast is 61.3 while the previous is 62.6.
US Unemployment Claims
The data records individuals who are filing for unemployment insurance skim for the first time in a new week. The numbers of unemployed persons have a way of reflecting the economic health of the country because it relates to consumers’ spending in the labor market. For those who stir the country’s monetary policy, unemployment is a serious factor.
The previous data on unemployment claims was -0.4% while the forecast is -0.1%. A lower outcome is excellent for the US dollar, while a greater result is not suitable for the currency.
EURUSD Technical Analysis
Monthly Chart Overview: Bullish Swing in resistance Zone
Monthly Resistances: 1.22500, 1.19057
Monthly Supports: 1.16502. 1.17000
The EURUSD pair is trading away from the high it created early this year 2021. You can see that the pair has been consolidating between the supply zones of 1.21600 and the demand levels of 1.7000 for months. This consolidation may lead to a reversal of the bullish trend on the monthly chart.
The resistance zones have been retested again before the selling pressure rejected price to hit the support level of 1.17000. If the sellers can take the price lower than 1.16502, we shall see the exposure of 1.13000 demand zones.
Weekly: Down Trend
Weekly Resistance Level: 1.22670, 1.19118
Weekly Support Level: 1.17800, 1.16300, 1.16500
Indicators from the US economy show that the US dollar is strong despite the COVID-19 delta variant infection that is threatening the recovery progress of the global economy.
A close of a weekly candle below the psychological zone of 1.16500 on the weekly chart will increase the momentum of the bears in the market. Forex brokers will keep a close watch on the pair as the trading week unfolds.
Daily Chart Projections: Bullish.
Daily Resistance Level: 1.18500, 1.19500.
Daily Support Level: 1.16660, 1.16000,
The double top pattern that took place some days back is still active as the bearish bias still favours the sellers. However, traders in short positions need to break out below the 1.16660 zones for the momentum to shift in their favour completely.
Most forex brokers will watch the EURUSD pair during the trading week to see if other factors are going to favour the overall bias or change the direction of price.
We expect a bullish scenario on the daily chart if the long position trades can hold the support level of 1.16660 and 1.16000.
Traders who are in a short position need to take the price lower than 1.16660 for the bias to shift completely in their direction.
Conclusion and Weekly Price Objectives
The Federal Reserve Chairperson will address the public during the week and investors, forex brokers, and other institutions will follow the report from the members of the committee to have clues about the US economy and monetary policy for the future.
The COVID19 infection rate may not stop the Fed from the taper plans and maybe a more hawkish statement might be heard from the Fed.