Weekly Forex Forecast (October 9 – 13, 2017)
The EURUSD lost ground for the second week in a row. This was the likely scenario given the September 25th close below long-term channel support near 1.1900.
Another probability that we discussed last week was that the 1.1670 area would attract bids if tested. It’s the August low and a level that served as a pivot between the 21st and 28th of July.
Friday’s low of 1.1669 followed by a 60 pip bounce is no coincidence. The 1.1670 handle did indeed attract buyers ahead of the weekend.
But despite Friday’s rebound, I don’t see this as a buying opportunity. While the single currency may claw back some of its recent losses, last month’s break of the six-month ascending channel was a significant development in my opinion.
The situation is similar to what happened with the AUDUSD at 0.7820. I cautioned some to think twice about buying the October 3rd bullish pin bar due to the recent shift in momentum. We could see a similar outcome here.
But we’ll talk more about the Australian dollar in a moment. As for the EURUSD, I closed my short position on Friday just above the 1.1670 support level. My initial entry was a few pips above 1.2040 just before the completion of the September 8th bearish pin bar.
I’ll be interested in shorting the pair again should buyers take prices back to the 1.1840/75 area. Otherwise, a daily close below 1.1670 would pave the way for a trip toward 1.1490.
Source: bit.ly/2y4oHlA
Another probability that we discussed last week was that the 1.1670 area would attract bids if tested. It’s the August low and a level that served as a pivot between the 21st and 28th of July.
Friday’s low of 1.1669 followed by a 60 pip bounce is no coincidence. The 1.1670 handle did indeed attract buyers ahead of the weekend.
But despite Friday’s rebound, I don’t see this as a buying opportunity. While the single currency may claw back some of its recent losses, last month’s break of the six-month ascending channel was a significant development in my opinion.
The situation is similar to what happened with the AUDUSD at 0.7820. I cautioned some to think twice about buying the October 3rd bullish pin bar due to the recent shift in momentum. We could see a similar outcome here.
But we’ll talk more about the Australian dollar in a moment. As for the EURUSD, I closed my short position on Friday just above the 1.1670 support level. My initial entry was a few pips above 1.2040 just before the completion of the September 8th bearish pin bar.
I’ll be interested in shorting the pair again should buyers take prices back to the 1.1840/75 area. Otherwise, a daily close below 1.1670 would pave the way for a trip toward 1.1490.
Source: bit.ly/2y4oHlA
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