In this lesson, we will learn about “Euro/USD Price Forecasting: The Euro under the Pressure of Weak US Economic Data”. Let’s get started
EUR/USD analysis and key points
Strong US economic data has overshadowed EZ GDP
Federal Open Market Committee meeting minutes are now the focus
Long wick candles are not suitable for the EUR
Euro funds have significantly declined
After the Eurozone GDP report showed a slight quarter on quarter growth, the euro has risen throughout the entire European trading period (see Economic Calendar below) The month on month (MoM) industrial production increased optimism, while the year-on-year (YoY) data unexpectedly rose relative to expectations, despite a decrease of 1.2% From the perspective of the United States, the construction permit data is mixed, with housing starts exceeding expectations and permits falling below expectations. Industrial production has decreased in the first two months, while manufacturing production has also increased. Today’s US economic data reinforces yesterday’s strong retail sales data and may allow the Federal Reserve to maintain higher interest rates for a longer period of time, as the data continues to reflect the strong US economy, Instead, it reiterated the need to quell any short-term expectations of easing monetary policy.
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Euro/USD Economic Calendar (GMT+02:00)
Source: Learnforexc Economic Calendar
Technical Analysis
EUR/USD Daily Chart
Chart prepared by IG Warren Venketas
Daily EUR/USD price trend shows several long up wicks (including today’s candles), which may indicate the next downward trend. Strong US data makes it difficult for bulls to hold onto the psychological threshold of 1.0900, and falling below it may retest the support of the upward channel (black) . According to the Relative Strength Index (RSI), before reaching the oversold area, There is still room for further decline in this pair
Introduction to Technical Analysis
Candle Mode
Warren Venketas Recommendation
Resistance Level:
1.1000
50 Day Average (Yellow)
Support Level:
<1.09001.0834/Channel Support
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IG client sends data: Short
IGCS shows that retail traders are currently not net long/USD in euros, and 55% of traders currently hold long positions (as of the writing of this article). Download the latest sentiment guide (below) to learn how daily and weekly position changes affect EUR/USD sentiment and outlook
