Last Updated on September 17, 2021
EURUSD Outlook – September 16, 2021
Some of the FOMC officials are of the option that the US central bank should reduce the buying of debt securities by the year-end, despite the report of a weaker payroll at the start of September 2021. Binary options brokers will also pay attention to the ECB president’s speech coming up during the trading week.
The European President Christine Lagarde Speaks
The ECB president will be speaking about the economy of the Euro at large through the HEC pairs and the European League for Economic Cooperation via an online platform. If her speech is more hawkish, it is good for the Euro.
Interest rate statement meeting will take place during the week and market participants will be kin to know what the outcome of the meeting will be because a hawkish statement will be good for the Euro currency. From her statements, market participants can scrutinize her speech for potential clues about the European economy.
We expect the president to interact with the audience during the questions and answers section. Forex brokers, traders, and other market participants will have the privilege to have a clue about the future monetary policy when they ask questions.
US CORE RETAIL SALES m/m
An exclusion of automobiles during the total value of sales at the retail level will give details of the spending trends amongst consumers. The automobiles take about 20% of the retail sales data that is why it is excluded from the changes summed up in the total value of sales. The results are released 16 days into the new month.
The previous data on home resales was -0.4% while the forecast is -0.1%
EURUSD Technical Analysis
Monthly Chart Overview: Bullish Swing in resistance area
Monthly Resistances: 1.22500, 1.19057
Monthly Supports: 1.16502, 1.16000
At the close of June’s candlestick, a bearish engulfing candle took out the bullish sentiments after the month closed around the 1.19057 price zones. It has been difficult for the buyers to breakout above the zones for some months.
With time, we may see the price dropping lower and lower as the US dollar grows in strength. If the bears can close below the 1.16000 zones, we shall experience another shift of trend in the time frame.
Weekly Chart Bullish
Weekly Resistance Level: 1.22676, 1.19118
Weekly Support Level: 1.17300, 1.16000, 1.16500
The EURUSD pair had started its bearish run from the high of 1.22676 down to the recent support level of the price. Previously, the bull’s swing was met by resistance twice around the 1.19118 levels and the Bulls could not break out above the zone.
However, if the buyers can find the momentum to take out the resistance zone, we shall see price rises towards the resistance zone of 1.22676.
There is a possibility that the sellers may close below the 1.16500 support if the pressures resume and it will drive the trend lower. Indices show that the US dollar is gaining strength as the economic activities improve.
Daily Chart Projections: Bullish
Daily Resistance Level: 1.19118, 1.22595
Daily Support Level: 1.16500, 1.16000
Long position traders could dominate the EURUSD pair from the 1.16500 level to retest the highs of 1.19118 for a breakout, but the price could not take away the level. A breakout above will shoot the price up to and exposing 1.22595 zones on the time frame.
At the beginning of the week, the US dollar is showing strength and the price of the EURUSD pair is pushing downwards. A close below the support areas of 1.16500 will attract forex brokers to take a short position on the pair for the bearish rally to continue on the time frame.
We expect a bullish scenario to continue if long position traders can push the price up above the resistance zone of 1.19115.
The double top scenario played out in the daily time frame, which took the trend down. If the sellers can overturn the support level of 1.16500 by closing below, we shall see the US dollar dominating the pair in days to follow.
Conclusion and Weekly Price Objectives
The speech from the ECB president will attract attention from forex brokers and other investors as to have clues about Euro’s economy and monetary policy for the future. Calls have been made to world leaders to speed up the COVID-19 vaccination in their various countries so that pandemic crises can be eliminated through global cooperation.
Some observers believe that without the power of partnership, cooperation and solidarity, COVID-19 vaccines cannot reach other people who need them.