Daily Market Analysis from ForexMart

[Obasi FXMart]

EUR/USD Fundamental Analysis: February 8, 2019

 

 

After four succeeding bearish trading, the euro major pair finally gained some momentum towards the end of the week. However, the euro bulls have limited the downward movement and close optimistically for the week. The week began with the US dollar taking the lead amid the thin trading during the holidays affecting market volatility, volume and risk appetite in the majority of the Asian session. Furthermore, below expectations released macro data in the euro zone escalated concerns in the market as investors worry on the tendency of a slowdown in the euro area economic activity amid the Brexit negotiations. In turn, these factors give a bearish sentiment to the common currency. At the same time, this supports the dollar’s attempt for a bearish breakout. 

 

With its decline for a week, the release of macro data from the US hinders the dollar bulls to continue with its further decline. There is no enough momentum for recovery for the dollar bulls given the pessimistic unemployment data while the bulls are in a calm state in the broad market. Yet, the euro cannot take advantage of the upward momentum amid the lack of major economic data to support a price rally. Hence, this results in range-bound trading after intraday lows close to the middle of 1.35, which will likely persist throughout the day since there is minimal chance for a breakout with no fundamental data to support this. 

 

Meanwhile, minor reports are anticipated to come out from the EU and the United States. The German trade balance data and preliminary French Q4 NFP data are anticipated to come out from eurozone while the  WASDE report and U.S. Baker Hughes oil rig count data are scheduled to be released from the US. 

 

On a technical aspect, it seems that it lacks the strength to determine the direction as it stays close to recent lows. 

[Obasi FXMart]

USD/JPY Technical Analysis: February 22, 2019

 

The dollar against the Japanese yen is trading slightly higher on Friday amid a relatively low volume. For the sixth trading day, volatility stays below the average after below expectations outcome of the US economic data. Various data including Durable Goods, Core Durable Goods, the Philadelphia Fed Manufacturing Index, Flash Manufacturing PMI and Existing Home Sales are less than expected outcome which settles the Fed concerns over this economic struggle ahead. 

 

Looking at the early price action, the USD/JPY pair will probably trade for short-term at 110.693. If the price stays above 110.693, it will signify the presence of buyers. The initial target of the week’s high at 110.950. Breaking this level would induce an upward growth to change that closing top price reversal of 111.130. 

 

On the other hand, if the price stays below the level of 110.693, it will indicate the presence of sellers. The primary target will be the main Fibonacci level of 110.452. Crossing to the weak side would mean a stronger drive for momentum with the lower limit at 110.255 as the next goal.  

[Obasi FXMart]

EUR/USD Fundamental Analysis: March 11, 2019

 

The euro is trading higher on Monday for a while prior to the opening of the US session, driven by the reaction of the market to oversold induced by a steep decline last week. The dovish signals from the ECB last week affect the long-term price movement, hence, we can conclude that the rally will not last for a long time. 

 

It is likely that we are also looking for price parity after the results of a mixed US employment has come out. This implies that the US economy is presently weakening. However, after the recent stimulus program of the ECB, it may mean that the eurozone is on the weaker side of the two nations. 

 

We can expect for low volatility after the release of the US sales report at 12.30 GMT especially if this turns out less than the forecast. The core retail sales report is anticipated to increase by 0.4% while retail sales are likely to come out flat. 

 

According to the daily chart, the price trend is moving downward and if it reaches the level of 1.1176, the downtrend will likely continue. The initial target is the Gann angle at 1.1560 in consideration of the price action at the beginning with upward momentum. Overcoming this angle would mean the short-partaking is getting stronger and could lead to a rally towards the 50% level of 1.1298. 

 

The short-range is presumed to be at 1.1420 and 1.1176 with the retracement zoner at 1.1298 and 1.1327 as the initial upward target. Meanwhile, sellers are likely to test the area given that the main trend is downward. However, if the current intraday fails to exceed today's’ intraday high of 1.1247, then we can assume the possibility of a short-term pullback to a short-term pivot of 1.1213.   

[Obasi FXMart]

EUR/USD Fundamental Analysis: March 13, 2019

 

Yesterday’s trading of the EUR/USD pair began in a subdued manner for this week. Meanwhile the price moved upward during the Asian and early European session which limited the gains of investors prior to the UK parliament meeting and limits having any major bets. Even after the release of the a mix macro data from the European calendar, the impact was not that prominent on the price movement but a strong resistance was encountered close to the level of 1.127, which then rallied and traded range-bound. This was supported by the mixed macro data which then weakened the greenback. Soon after, the us dollar gained momentum and strengthened in the late European hours after the release of optimistic US macro data. 

 

The European calendar remains calm from the release of non-farm payroll in France in the fourth quarter while in US session,  there is the release of the core CPI update and speech from FOMC member Brainard prior of UK parliament’s vote on Brexit deal. Both of the French and US macro data are unlikely to have a strong impact on the price movement with a neutral forecast or unchanged data. On a technical aspect, a breakout would determine the price direction which will likely be the main reason in short- and long-term outlook. Moreover, with the May deal and widening spread between German and American 10-year bonds will probably favor the US dollar. 

[Obasi FXMart]

EUR/USD Fundamental Analysis: March 15, 2019

 

 

The euro major pair moved in a two-way price movement driven by investor sentiment because of headlines. There is high-risk appetite throughout the day which supported the euro to move in a positive price action early in the day. However, news of a delay in meeting between the Chinese and US presidents to sign a trade deal later this month to April which influenced the investor sentiment to be cautious in the late European market hours. In turn, the EUR/USD pair dropped slightly but attention is still focused on the UK parliament vote to extend the article 50 deadline and price in the majority of global traders. 

 

Investors wait for the release of the macro data to get some hints on the trading session which is about to close for the week. On the fundamental reports, data on Italian CPI & HICP and Euro area CPI data from the EU calendar are expected while report on Industrial production data, JOLTs Job Openings, Michigan Consumer sentiment, and Michigan Consumer expectation from the US are scheduled to be published. 

 

On the technical aspect, there is less resistance on the upper side of the channel if Brexit continued in front of the UK parliament and high-risk appetite in the broad market. 

[KostiaForexMart]

EUR/USD Fundamental Analysis: March 25, 2019

 

 

This week starts with a fresh new high for the euro major pair. However, all of the gains were erased after the release of a weakened European PMI, particularly from the German and Eurozone. The results were not expected by investors. Moreover, will the presence of uncertainty, there was an increase in selling bias for the currency, which resulted to a downward rally which was mainly due to the weakened manufacturing added to the concerns on US-China trade war in the background of Brexit negotiation that affects the overall imports and exports of the nation. Uncertainty will probably resume during the week.  

 

With the big drop of the EUR/USD pair on Thursday, the price could not break the resistance level of 1.1318. This was followed by a slight reversal on Monday morning after its plunge to recover the previous losses and reached 1.131. 

 

Fundamental data from the US particularly the Chicago Fed activity index and Dallas Fed manufacturing activity are anticipated in the afternoon. Meanwhile, reports from German will be published by the CESifo group. This gives signals on the present conditions and business assumptions in Germany. Forecasts are positive for these expected data.

[KostiaForexMart]

EUR/USD Fundamental Analysis: March 26, 2019

 

 

The euro major pair began the week with optimism after a sharp drop on Friday. They managed to have positive results across the day and close with a slight upward movement at the end of the day. Events on both the EU and the US bond market had a big impact on the price activity. Meanwhile, the bond market induced a risk-averse reaction to the European and American markets. Yet, the positive macro data from Europe as well as a slight rebound in American bond that lessens the aversion of traders to risk in yesterday’s price movement. 

 

The German macro data favored the euro to have gains. During the US session, it was apparent that there is a healthy risk appetite on trading activity. Thus, the euro closed on an optimistic note in the broad global market yesterday. Yet, the bond market still gives hints for a US recession, which also restricted the gains for euro yesterday. 

 

During the Asian hours, the pair traded range-bound prior to the update of the EU macro data, which will confirm the positive signals. At the same time, the pair has a bearish pressure due to Brexit negotiation. In the meantime, traders are heedful and careful in placing major trades, although the positive fundamental macro data can drive momentum and short-term opportunities for direction. 

 

Today, data on Building Permits, Housing starts, and CB consumer confidence are anticipated from the US and the release of GFK German Consumer Climate data are scheduled from the eurozone.

[KostiaForexMart]

EUR/USD Fundamental Analysis: March 28, 2019

 

 

The euro major pair had a slight correction at the beginning of the Thursday session after the rise in the US dollar index. It rose with a dovish sentiment from the major world banks. 

 

Yesterday, the ECB President Mario Draghi gave a signal of a possibility of a decline in the global economy. The central bank of New Zealand maintained the interest rate but hinted at the likelihood of a rate cut in the near term before or around the month of November. The price remained calm at the level of 1.1387 after the news saying that Theresa May will resign if the deal on Brexit is rejected twice. 

 

Despite the global economy being sensitive, the EUR/USD pair may still have a bright outlook and remain optimistic on closing amid the major events today. Data on business climate for March and the Harmonized Index of Consumer Prices (HICP) index for March from the eurozone are anticipated to be released from Europe while the GDP for the fourth fiscal year is scheduled to be released from the US. This data is important as it would have an impact on major currency pairs including the euro. 

 

The Simple Moving Average was found above the pair’s trading level, which gives a bearish tone for the day. It was able to reach the resistance level of 1.1267 in the past few days and there is a chance to achieve this area again today. However, it seems that there is no momentum to push the pair considering the MACD indicator. 

[KostiaForexMart]

EUR/USD Fundamental Analysis: April 3, 2019

 

 

The euro declined more than the strong resistance level of 1.1192 during the North American session after the drop in US-German yield spread. However, the decline seems to have diminished on Wednesday morning. The attempt to work on the strong resistance level has succeeded as it moved slowly towards the next resistance level. 

 

With the most recent optimistic news related to the US-China trade deal almost close to the resolution supported the crude oil prices up to $70 per barrel level, which is also anticipated to raise the EUR/USD pair. 

 

In the Eurozone, Markit will release the March PMI monthly Composite Reports on Manufacturing and services for Eurozone, which is expected to be close to the previous result. Additionally, the February Retail Sales (YoY) from Eurostat is also scheduled in the eurozone. Meanwhile, in the US, the March Non-Manufacturing PMI from the Institute for Supply Management (ISM) will be published. Although, this won’t have a big impact. 

 

The pair broke the upper level of 1.1220/1.2230 from 78.6 retracement level. Yet, it failed to break the resistance level of 1.1270 as it trades higher than the SMA for the important levels to come. The pair now have a bullish sentiment on its future outlook. Yet, the MACD shows no hints of bullishness to buy. 

[KostiaForexMart]

EUR/USD Technical Analysis: April 8, 2019

 

 

The euro major pair is trading at a higher price on Monday session but stays in the range of yesterday for the third time. This chart movement imposes indecision and impending volatility which is driven by a weaker US dollar. 

 

There is pressure over the dollar after the result of sluggish growth of the US non-farm payroll report with subdued average hourly growth. Hence, traders are likely to set positions prior to the release of the minutes of the meeting of the US Fed on monetary policy on Wednesday. 

 

Although, the pair shows upward main trend to the swing chart despite the longer downward trend. After buyers broke through the previous main top at 1.1420 and trading to 1.1177 will shift the trend downward. However, a move towards 1.1448 will probably cause a continuation of the upward movement. 

 

A maintained move higher than 1.1232 will indicate the presence of buyers with the first upper target at the minor top of 1.1255. Passing this level could bring the euro pair to the next upward Gann angle of 1.1287 with highly likely speed up to 50% level of 1.1316. 

 

On the other hand, if the price stays below 1.1232, this would mean the presence of sellers with the next downward target at 1.1183, 1.1185 and 1.1187. A rebound is anticipated on the primary test of 1.1183 to 1.1187. But if this does not happen, then we can anticipate for the pair to extend up towards the bottom of 1.1177 and the trend with shift downward through this main downtrend. 

[KostiaForexMart]

EUR/USD Fundamental Analysis: April 11, 2019

 

 

The euro major pair extended its consolidation within the range of 1.1273 and 1.1280. With rising geopolitical tensions from the FOMC minutes and the most recent update on Brexit, the growth of the global economy is affected negatively. 

 

The US dollar remained weak after the FOMC published a dovish sentiment on economic growth. 

 

The EU officials announced a flexible extension of Brexit until October 31, which means that Britain can exit before the deadline before the set date given that the deal can be ratified before the specified date. This means that they are hoping for EU to finish at an earlier data. In case that the UK is unsuccessful to ratify the deal on May 23rd, it means that EU elections can take place. 

 

In the eurozone, Data on Harmonized Index of Consumer Prices (YoY), the Consumer Price Index (YoY), Consumer Price Index (MoM) and Harmonized Index of Consumer Prices(HICP) (MoM) is scheduled to be released today. On the other hand, in the US, data on March Producer Price Index ex Food & Energy (YoY), an update on weekly Initial Jobless Claims as well as Counting Jobless Claims are anticipated to be published today. 

 

Henceforth, the euro traded range-bound during the Asian session and remained in the range at 1.1255/1.1285. The EUR/USD pair trades above the Ichimoku clouds, as well as the baseline and the conversion line, giving a bullish signal on future movements. The Bollinger bands remain on a decline, signifying less volatility. The euro major pair hovered at the upper boundary that could open the possibility for a bullish trend.

[KostiaForexMart]

EUR/USD Fundamental Analysis: April 16, 2019

 

 

Previously, the German spread slid by 232 bp and gave a strong momentum to the euro major pair. After it grew from its lowest point at 1.1294, the pair was trading close to 1.1307 during the Asian hours. The pair stayed close to the secured level ranging at 1.1302/12.  

 

In the international news, there is optimism regarding the US-China trade agreement with expectations that the pair will end prior to the last week of April.

 

The US Industrial scores (MoM) will be released, which is anticipated to cause some volatility. The forecast is presumed to increase by 0.2 percent compared to the previous one. 

 

In the EU, they will publish the economic sentiment for Germany which will likely have a big impact with the forecast of 0.8 points increase. There will also be the index for the EMU but will have a lesser effect. 

 

On the 4-hour chart, the price trades higher than SMA, indicating bullish sentiment. The price level of 1.1288 on 200-SMA is higher than 100-SMA, which is how the price looks in general. It seems that the price will be in a neutral stance for short-term 

 

When looked into the 30-min chart, things urge more towards the neutral side in the near term. However, the euro pair had already breached the 21-day SMA and was afterward trading below the 55-day SMA.

[KostiaForexMart]

EUR/USD Technical Analysis: April 18, 2019

 

 

The euro major pair declined yesterday from the high of 1.1325 and then consolidated close to the level of 1.1300. There were signs of a decline during the early Asian hours. It needs to descend to the strong support level in order to confirm the bearish tone. Still, this pair tries to keep the level at a sustainable level of 1.1300. 

 

On the technical perspective, the Ichimoku clouds give a bearish tone towards 1.1280 with the baseline and conversion line emerging with the pair. Thus, this generates a neutral forecast. As for the SMA, the price was below the 100- and 200- SMA giving a small bearish trend. However, if it rises backed with the fundamental reports, then the pair will see a strong resistance level of 1.1320. 

 

Early this week, the ECB officials stated their concerns for strong economic growth but seem far-fetched. The dovish sentiment originated from the drop of the EUR/USD pair. It may worsen the significant fundamental events disappoints market expectations. 

 

Today, data on German PPI for March (MoM) came out less than the forecast. Other reports including German PMI for Germany will be released later and Retail Sales Control Group for March from the United States.

[KostiaForexMart]

EUR/USD Technical Analysis: April 22, 2019

 

The euro major pair is moving sideways in a narrow trading range of 1.1237/52. There is some apparent movements on the Thursday session as it dropped to a two-week low amid the increasing greenback. The decline dropped after the release of the US retail sales data which induced the US dollar index to increase. 

 

As for the pair, it’s decline has further intensified in the background of the weakened data in the German and Eurozone PMI reports.  It looks like that after effects of the Thursday session has remained. 

 

The US dollar reached the level of 97.50 as the monthly high against a basket of currency pair.  Also, the crude oil was peaking in high levels during the morning session, which further complicated the condition. 

 

On the other side, the progress remains risk-averse despite some pessimistic news on Brexit over the weekends. Speculation continues in regards to the resignation UK PM Theresa May while everybody waits for the advancement of the UK parliament officially on April 23rd.  

 

For the day, data on economic activity index from the Chicago Fed National Activity Index (CFNAI) for the month of March and estimate of the March MoM existing Home Sales from National Association of Realtors are scheduled to be released. If the home sales came out with a drop more than 210K, it will likely result in an increase of the euro major pair. 

 

In trading, the upper hand seems to be on the bears as the 21-SMA moves along the pair and moves strongly in long-term that could mean a bearish tone for long-term. This is further supported by the 100- and 200-SMA marking higher than the euro major pair. The resistance line around 1.1324 stands strong while the support will probably remain at 1.1212. 

[KostiaForexMart]

EUR/USD Daily Analysis: August 2, 2019

On Wednesday, the markets were signaled by the Fed that they do not intend to begin a reduction cycle. For now, they will analyze the risks of the situation and then, they will adjust the policy if needed. 

In effect, this put the market to set back as they positioned on the expectation of a start of the easing cycle. However, this returned not long after for rate cut in the short-term. 

The recent statement of US President Donald Trump to add a tariff on Chinese imports, signifying that trade war talks are not yet settled. In turn, this induces an aversion to risks on metals while gains are reversed on equities. 

A chance for a rate cute grew in September and the money markets are almost ready to get ready for the reduction. 

Moreover, the pair also showed a reversal candlestick on the daily chart. Yesterday, the bullish trend indicates a strong buying kept the pair to bid on a decline. 

Despite the release of the jobs report, the market sentiment is not likely to have a big change as they are getting ready for the rate cut. 

The significant resistance level is at 1.1118, which kept the pair rising higher in April-May prior to Fed decision on Wednesday. A breakout would be important and could induce a trend reversal. Nonetheless, the US employment data will bring volatility today. 

[KostiaForexMart]

EUR/USD Daily Analysis: August 5, 2019

Last week, the headlines on US president Trump publicized the imposition of tariffs on Chinese goods has had a big impact on the US dollar rate. Alongside with it, this occurred simultaneously with the markets placing bets on another rate cut in September given the dovish decision of the Fed. 

Considering the CME Fed watch tool, a rate cute is probable in September by about 50 basis points in a quarter percentage chance. This is not surprising but trade tariffs add could adjust the sentiment at the next Fed meeting. 

EUR/USD trend changes swiftly and whose central bank, the ECB or the Fed, will ease their policies becomes uncertain already even daily. On a positive note, it seems like the technical analysis becomes more stable even if the fundamental outlook looks hazy. 

The recent gains of euro major pair were primarily due to the weakened dollar and commodity instruments are in red in this month. 

The level of 1.1118 plays a significant role in the trend. An upward rally countered the earlier breakdown. Hence, it is likely for the pair to drop at the beginning of the week to be sustained in this area. 

The area of 1.1118 was considered to be either resistance and support. This level limits short-term gains. If we can sustain the rally tomorrow or the day after, the next probable target is around 1.1230 given the convergence of the 50- and 100MA.  

[KostiaForexMart]

EUR/USD Daily Analysis: August 7, 2019

Recently, the news concerning the trade war between the US and China urged traders to act relative to the Chinese exchange rate. 

Some resistance establishes from 200-MA on the 4-hour daily chart and a strong confluence of 50- and 100-MA to 1.1230.

A push higher than the resistance level took place on the intraday and closed below it. A Doji candle indicates exhaustion and builds a pullback. A bearish engulfing candle was seen just after the European open. 

It seems that the pair is descending. A strong bullish tone pushes the rally of the pair at the beginning of the week. This also opens a chance for a reversal in the short-term. The pair returned to the 100-MA on the 4-hour chart. This can give a sign when the pair reaches the top price for the week. 

In general, volatility can spark concerning the trade war. Also, there is not much going on in the economic calendar, except for the speech from Fed member Evans which remains the focus in the trading session ahead. 

[KostiaForexMart]

EUR/USD Daily Analysis: August 9, 2019

A tweet of US President Trump has once again spiked volatility but trading of EUR/USD pair still remains in the range. He remarked his disappointment in the strength of the dollar due to higher rates than other nations. Looking at the news, three central banks in India, New Zealand and Thailand had reduced their interest rates with 35, 50 and 25 basis points, respectively. 

German trade balance and French industrial production data came out less than expected at the earlier part of the day, although this did not really have an impact on the trading. Another report on the producer price index will be released at the US session. Although, it doesn’t usually bring volatility. 

Yesterday the euro major pair remains strong as it did not go down with just right significant resistance confluence. 

The support level of 1.1188 keeps the pair from moving higher so far. Closing above this level today could lead to a reversal morning star candlestick on the weekly chart. Hence, the bidding of the pair will likely continue until next week. 

Moreover, it is logical for the pair to continue range-bound trading given the quiet economic calendar. 

As we noted earlier, the resistance is important while the 200-MA moves in a descending trendline on the 4-hour chart. But at the same time, the 50- and 100-MA are also considered important. 

Overall, the euro major pair will persist to trade within the range and probably attempt to hold the pair prior to the upcoming trading session. The pair is likely to have a reversal pattern on the weekly chart.  

[KostiaForexMart]

EUR/USD Daily Analysis: August 14, 2019

Given the volatility in the markets, the decline of the common currency markets is nothing compared to the volatility across the markets. Risky assets rose after Trump announced postponing the imposition of 10% tariff on Chinese goods. Nonetheless, the euro major pair keeps in range over a week. 

The GDP growth dropped by 0.1% in the second quarter, meeting analysts’ expectations. However, this does affect much the rate. Data from Europe came out softer than anticipated, which resulted in the EUR/USD pair to ease lower. 

It seems that the short-term trading of the EUR/USD pair is headed downward after several attempts on the resistance above. 

Meanwhile, let us take into consideration a reversal candlestick on the weekly chart after a rally last week. This trend keeps purchases on a decline. 

The pair is trading between the 100- and 200-MA on the 4-hour chart. Yet, the range remains strong even if it slightly weakened. A horizontal level is found close to the 100-MA at 1.1155. The horizontal level acted as a resistance before and a slight confluence was formed. 

There is still a strong level around 1.1118, which was tested several times this year. If the pair is able to move lower, this level plays strongly for a decline. Yet, even if there are fundamental news that affects the market, the euro major pair manages to remain in range. Meanwhile, dips can still be bought considering the reversal pattern on the weekly chart.

[KostiaForexMart]

EUR/USD Daily Analysis: August 15, 2019

Fed member Bullard’s view of reducing interest rates once again this year remains despite the volatility this week. 

Investors’ concern rises as the yield curve shows inversion and pressure continues in the equity markets. The markets anticipate the Federal Reserve to take action and ease rates as the inversion outcome hints a possible recession. Yet, Bullard remains firm, shrugging off the market demand. This shows that the Fed would not react in every news about the US-Sino trade war. 

Although volatility has been apparent in various assets, the euro major pair isn’t exactly one of them as it continues to fluctuate on its average range. 

Yesterday’s range kept a bearish tone but the expected data to come out more than the technical aspect that pushes the pair. The US retail sales, as well as Philly Fed manufacturing index and unemployment claims, will be released today. 

The EUR/USD pair moved lower because of a strong dollar and broke the confluence of support. 

The indicator limits the downward range of the pair that has been going on since early last week and now it is broken. This looks like an obstacle on the upside. At the same time, a horizontal level was seen close to the moving average of 1.1155 that prompted a confluence at the resistance. 

Below, the major support level is at 1.1118, which keeps the pair higher than April and May. Moreover, this keeps the pair higher in latter July on the 4-hour chart. 

The pair seems to be testing the lower limit of the descending trend channel, although it may be too early to decide whether it will sustain the downward trend.

[KostiaForexMart]

EUR/USD Daily Analysis: August 16, 2019

A bullish morning star pattern was seen after the surge of the EUR/USD pair last week. Yet, the significant support level of 1.1118 is not yet established, which means that the bears can be in control of the movement. This area is important as this held various declines for this aside from a short drop below in latter days of July. 

On Thursday, US economic data was released that shows better than forecast that supports the US dollar. Retail sales grew by 0.7% in July, more than the 0.3% forecast of an increase. This excludes the automobile and gas, which then prompted the data to increase by 1.0%. 

Trade balance from Eurostat is also to be released soon. Also, there is the consumer sentiment and building permits from the United States. Although, there are not likely to keep the impact on the exchange rate. 

The significant level of EUR/USD pair was broken and there will also be not many purchases. Moreover, the pair begins to enter the oversold zone on the 4-hour chart. 

The support level is around the area of 1.1075, which makes the lowest close on a daily basis for the year. Moving forward, the next probable target is around 1.1027, which was the August low. 

It is not likely for the pair to break again for another fresh yearly low today, considering few expected fundamental events on the economic calendar. 

Closing of the pair today is relevant. If the pair manages to keep the current levels, there will be a reverse bullish trend of last week’s reversal pattern. More importantly, this will confirm the resumption of the EUR/USD downtrend. 

The overall momentum of the EUR/USD pair is downward, although the pair begins to oversell on the 4-hour chart. In comparison to a basket of major currency pairs, the common currency is likely to have its biggest loss. Yet, even if there is a light economic schedule, the news may induce some volatility in the pair.

[KostiaForexMart]

EUR/USD Daily Analysis: August 20, 2019

The euro major pair faces pressure for the whole week but still, the dollar strengthened as the DXY index rises higher than the resistance. It was able to close higher than 98.25 daily level, which was the same level that kept the price lower in April and May and almost close to the two-year high.

Although the decline is not purely because of the EUR/USD pair as the euro is pressured against major currencies over the past week. Market's attention will then shift to the upcoming Fed meeting on Wednesday. For now, there is the PPI from Germany which is expected to come out higher than the forecast.

The levels of 1.1075 (upper) and 1.1118 (lower) were important yesterday. The previous level was kept as sellers entered the market prior to reaching the latter level, which also limited the recovery. The price movement shows weakness, especially in an attempt to test again the support level today.

Moreover, it is important to see how far the pair can go and if it will reach a fresh new yearly low prior to the Fed meeting tomorrow. Thus, it may not be wise to push the price lower in the current condition.

At a later session, we can expect resistance to continue around 1.1118 amid a rally. It needs to reach the level higher in changing the short-term direction of the pair.

A breakdown at 1.1075 opens the yearly low at 1.1027. If it successfully moves lower than 1.1027 today, then we might encounter some stops. In spite of that, the pair might have a difficult time to break the level and keep the flow without a specific driver to cause such movement.

There are not many events to look out for in the economic calendar prior to the expected Fed meeting on Wednesday.

[KostiaForexMart]

EUR/USD Daily Analysis: August 22, 2019

In the beginning, the market reaction induced volatility. However, the euro major pair kept the pair in range and was ahead for the week. At the same time, the future markets have revised lower their expectations for further reduction. Although, they have already priced in another cut in September. 

The result of PMI data has kept strong bidding at the beginning of Thursday trading. Other data including the Manufacturing and Services PMI figure of France, Germany, and the Eurozone came out better than expected by analysts. 

The euro major pair rallied upward outside its most recent range amid the release of data and prior to losing a bit of its strength. 

In the technical analysis, the EUR/USD support level is at 1.1074, which was the lowest daily close in 2019. Also, the US dollar index (DXY) begins to pull back from the resistance level of 98.25. 

If the pair keeps the price higher than the support level, then there is a higher chance for recovery. However, a break above the 1.1118 mark could confirm the recovery of the pair, which was a horizontal level that drops slightly higher than the range high. 

Looking at the fundamental news, the ECB will release the Fed minutes today, particularly the PMI figure. Aside from that, the symposium at Jackson Hole will begin today for three days. 

Hence, the euro major pair will likely trade range-bound but various events could affect the pair and induce a breakout, especially with the Jackson hole symposium.

[KostiaForexMart]

EUR/USD Daily Analysis: August 27, 2019

The Friday rally of the EUR/USD pair was a result of various events, which means that it is just not solely because of concerns in trade war. Soon after, this has changed as President Trump mentioned trade talks are still ongoing. 

The common currency faces various risks and has had fluctuations amid the recent shift. Although, this may not be apparent compared to other currency pairs. Trump’s recent comments regarding a phone call between the two nations will likely have an impact on the session ahead. 

German GDP data showed a drop by 0.1% in the second quarter as expected. The common currency was not affected after the release of data. 

Another data from France came out, particularly the consumer confidence reaching an 18-month high. In the afternoon, data from the US is anticipated to be released. 

The euro major pair was found to have a significant confluence of the support with both 50- and 20-MA on the 4-hour chart. 

For now, the euro major pair is trying to recover from a sharp decline on Monday. It looks like the support level will be found at this level. Meanwhile, the initial resistance level is at 1.1118, which kept the pair lower on Friday.

[KostiaForexMart]

EUR/USD Daily Analysis: August 28, 2019

On Friday, the common currency surged on Friday due to concerns of a trade war. Comments of Trump also caused the recovery of the gains for the pair. Although the appetite for risk has diminished as investors reacted to the comment of Trump. The S&P 500 also met some resistance and acquired a few losses yesterday. 

Other data such as the consumer confidence from the US yesterday and from Germany earlier this day came out positively that drove yesterday’s trading. Although it seems that the euro major pair is losing momentum. Furthermore, the buyers didn’t get to keep the keep from going down at 1.1100 that may mean weakening of the pair.  

There are few economic data that may bring volatility in trading, especially with the upcoming GDP data from the US and Germany tomorrow. 

It may be worrisome for EUR/USD bulls that the price did not stay above the level of 1.1100 on Tuesday. This will likely push the pair higher that may mean an upward turn for the pair. 

The next downward target will likely be around 1.1075 but there are some hints of exhaustion and the pair will likely move sideways between the European and US session and then breaking slightly lower in the afternoon trading. An important resistance will likely be around 1.1100. 

Although, it looks like volatility is moving sluggish but may be influenced by the Sino-US trade war. With the important data from Germany and US expected on Thursday, this could induce volatility and could mean a significant move of the pair.