EURUSD After ECB Holds, Italy to Come Back into Focus for EuroTechnical Overview:
Weekly Pivot: 1.1581
Weekly Resistance: 1.1631 - 1.1663 - 1.1713 - 1.1765 - 1.1790
Weekly Support: 1.1531 - 1.1501 - 1.1449 - 1.1420 - 1.1369
Technical Indicators:
MACD: MacD starting for more down side moment & show volume for seller side.
RSI: The indicator moving below 50 level, means more downward movement.
Moving Avg: SMA55 (1.1612) & SMA200 (1.1569) strong support for EURUSD.
Fundamental:
The most important news for EURUSD are following:
>> The European Central Bank continues to aim for ending its QE program in December, then raising rates by the end of “summer 2019”, citing “receding” uncertainty around its inflation outlook.
>> Any goodwill provided by the ECB’s confidence in its policy path was quickly erased by Friday as concerns over the Italian government’s upcoming budget resurfaced.
Price action at the end of the week was revealing in a number of ways. The European Central Bank is sticking to its preset policy course as uncertainty around its inflation forecasts is receding, and that’s certainly good news for the Euro given the swirling concern about potential contagion from the Turkish Lira meltdown.
But with Italy back in the news, any goodwill injected into the Euro from the recent policy decision was quickly neutralized. Mario Nava, the head Italian stock market regulator, abruptly resigned at the end of last week amid mounting pressure from the governing Five Star Movement and Northern League citing an “issue that is only political.”
As a standalone development, the resignation is meaningless; however, in context of a pattern of increasingly harsh anti-EU and anti-Euro rhetoric, market participants pushed up Italian bond yields and reined the Euro back in from its post-ECB meeting highs. Now, attention is on the upcoming Italian government budget and whether or not a showdown with Brussels is a fait accompli – particularly if technocrat Giovanni Tria, the Minister of Economy and Finances, is similarly pressured out of his job.
Beyond rising concerns over Italy effectively neutralizing dropping concerns over the ECB’s inflation outlook, the economic calendar should only impact the Euro in a minor fashion.
Next Week, Tuesday & Wednesday ECB President Draghi Speech is very important for EURO future.
Thanks
YoCryptoManic
Weeklyeurusd
Weekly Technical Chart- EUR/USDThe EUR/USD pair jumped to 1.1979 following the release of the US Nonfarm Payroll August report. The pair however, changed course quickly on headlines reporting that the ECB won't be ready to taper QE until December, which seems a desperate move to keep the pair below the 1.2000 level. Now struggling around 1.1900, the 4 hours char shows that the pair was unable to settle above a bearish 20 SMA, whilst technical indicators remain within negative territory, losing upward strength. Below 1.1880, the short term risk turns towards the downside, with scope then to retest this week low of 1.1822/1.1760. We can see fall towards 1.1700.
EURUSD October 24 OutlookEURUSD October 24 outlook
Let's analyze what will happen on EURUSD, especially on this week. As we can see this pair still in down trend, maybe buy is not a good option trade. If you wanna buy in this pair, use a stoploss and open at right support level.
There is two major forex pattern in EURUSD, channel down pattern and descending triangle pattern. At channel down, as long as this pattern not break up, Sell and take profit inside this area will be best option, keep short position on EURUSD, and wait for another short change.
Descending triangle pattern are very important to find where is the strong support, and intraday bullish possibility. Ad if the support break down, short position will be save heaven for all., because EUR/USD will enter the zero-G freefall to 1.000. and its very suitable for swing trader. But breaking the major support its not easy, as we can see 1.0820 are may 27 strong support level, and also strong support at july 21 and march 29. So to break down this support need a strong fundamental news event.
Move to resistance level, in EURUSD there are two strong resistance for this week, June 23 and july 22 support will become strong resistance, August 05 and last week resistance also a good resistance for this week. So we get our resistance level at :
Resistance 1 : 1.0950
Resistance 2 : 1.1040
So this week support resistance already clear. If you are in short position, best TP at support level, and if you are in long position, best TP at resistance.
Best opening position for this week base on fibbonaci pattern.
If the price bounce up, wait for sell entry at .618 and take profit at 1.414