EURUSD Outlook & Technical Analysis for binary options
The USA is having another hit of COVID-19 as the government of Donald Trump tries to revive the country’s economy. Likewise, the Eurozone stimulus plan has helped the various business sectors in the gradual recovery process amid the pandemic, as the Euro gets stronger on RaceOption broker.
Euro Zone Fundamentals
The stimulus introduced during the COVID-19 pandemic by the European Central Bank has helped in the gradual recovery of the Euro. The PMI outcome will go a long way for investors and other trading brokers as the reopening of business is gradually picking up.
Germany Manufacturing Purchasing Index, Forecast is 48.0, and previous data was 45.2.
In the manufacturing sector, managers’ activities were measured to show the economy’s growth rate through the number of activities carried out in the industry within a specified period.
When we get a reading that is higher than 50, it is suitable for Euro, but a lower value is bad for the Euro.
Flash Manufacturing PMI
The COVID-19 second wave has encouraged the new vaccine’s speed to be tested on some patients to prevent the spread before it halts the economy’s recovery process.
The purchasing managers are the source of the collation of the data regarding the country’s economic strength. The report shows the conditions of businesses, employment, production, and supply deliveries, among other leading indicators used by the purchasing managers in the manufacturing industry.
If the released data is higher than 50.0, it is bullish for the US currency and shows an expansion in the industry. However, if the published result is below the expected data, it is bearish for the dollar a significant currency.
Forecast data is 52.0, while previous data was 49.8 while we wait for the actual data.
EUR vs. USD Long-term Objective: Bearish Bottoming
EURUSD Technical Analysis
Monthly Resistance: 1.21545, 1.25558, 1.15698, 1.18523, 1.14225, 1.14950
Monthly Support Levels: 1.08288, 1.10292, 1.03402, 1.06359
The month of July has been favorable for the Bulls since the established support zones of previous months of January, February, March, and April were able to support the Bulls runs. If the Bulls momentum is strong enough, we may see them overturn the resistance zones of 1.15698 into support.
However, the Resistance zone of 1.15698 is where the bulls must overturn to have more buyers. The Bears were able to reject the advancement of the price at that zone on 02 March 2020. Now the question is, will they succeed in denying the Bulls advancement again?
The answer to this question will be revealed in the weeks to come. The thing the trading broker can do is to wait patiently for the psychological zone to react.
Bearish momentum gets weaker as the month comes to an end in a few days.
Weekly Chart Bullish
Weekly Resistance Levels: 1.15698, 1.14963
Weekly Support Levels: 1.06361, 1.07197, 1.07666, 1.08965, 1.08968, 1.09812, 1.10322, 1.11726, 1.12430
After the Bulls were able to build steady higher lows to take out previous resistance and overturn them to support, the bullish accumulation of 06 July and 29 June 2020 on the support level gave the bulls an edge in the EURUSD market in the past three weeks.
The week candle is closing at the 1.15698 resistance level, and it is a psychological level for traders. However, the bears are going to react at that level because of the previous reaction around the zone.
If the bears do have a more robust force, they may be able to push back the price to 1.12430.
EURUSD Mid-Term Projections: Bullish Trending
Daily Resistance Levels: 1.14226, 1.14971, 1.13406
Daily Support Levels: 1.07271, 1.06377, 1.07684, 1.08707, 1.09911
The Bears zone has come under pressure from the bulls surge, will they succeed to fight back to regain the supply zone? In the coming days, the answer will come to light.
However, the railway track candle that closed above the resistance level of 1.14971on 10 June 2020 shows strong bullish momentum in the market that will likely take the price of EURUSD higher in the coming days.
If the Bears can hold the resistance levels, we may see another rejection of the Bulls rally in the coming days among the major currencies.
EURUSD: H4 Chart
4HR Resistance: 1.14225, 1.13205
4HR Support: 1.12779, 1.12610, 1.11660, 1.1190
From the H4 chart, you can see the previous resistance level of 1.14225 serve as support after the breakout above the ascending triangle of 10 June 2020.
Trading brokers should note that if the bear’s attempt fails, it will be regarded as a retest of the zone before the buyers take over the market to push the price up to another resistance level.
The Bulls have total dominance of the market all the time frames, a sign of recovery from the COVID-19 pandemic. The only obstacle that the bulls have is to overcome the resistance level on the daily time frame by overturning the level into support.
The bulls gained about 3.32% from the swing low of 1.11681 to the swing high of the daily candle at publication time.
The bearish trend is not that convincing in on EURUSD as the days go by on the H4 and daily time frames. The bears have lost their momentum because the supply zone is under threat, and it will take certain news in the market to turn the direction of the market in the nearest future.
Conclusion and Weekly Price Objectives
As the EURUSD is at the weekly resistance, there are sentiments in the market between safety trades and risk around the zone. The second wave of the COVID-19 can turn the table to either direction as investors, Institutional traders, and trading brokers approach the market with caution. , as the EURUSD sets a new yearly high.
The weekly candles have been strongly bullish, and July may close with a bullish run against the dollar as we approach the end of the month.
- USDMXN – Weekly Outlook –October 16 2020 - October 16, 2020
- EUR/USD Weekly Outlook & Technical – 9th October 2020 - October 9, 2020
- EUR/USD Weekly Outlook & Technical – 1st October 2020 - October 1, 2020