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EUR/USD: a big week ahead looking bearish

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 26, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - EUR/USD is slightly bid in the Asian session, with a series of upside sticks on the hourly chart, making shallow higher highs and lows awaiting for full markets to get involved as we head towards the European's coming on later.

    There are a number of key releases ahead starting with German IFO, US home sales and durable goods orders the next day before the FOMC showdown in the middle of the week.

    However, the euro's downside is wide open after the ECB's recent openness about the risks to the economy and external headwinds that will likely require further easing of the ECB's policy to further accommodate and allow the EZ to continue towards meeting the ECB's inflation target and other economic objectives.

    EUR/USD levels

    Technically, the price recently broke below the 200 DMA at 1.1121. This gave way to a test of the 1.1100 level that broke and subsequent offers took the major right off its hinges and punished any committed bulls creating a disparity between the cluster of MA's on the hourly time frames, and the largest since the August rally.

    The 30 year channel at 1.0560 and 1.0457 is now exposed. For the near term, S2 stands at 1.0935 ahead of S3 at 1.0770. 1.1100 on the upside comes as first resistance ahead of the pivot at 1.1187.
    For more information, read our latest forex news.
     

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