EURUSD Weekly Forex Forecast – 23rd to 27th Jan 2017
Technical Outlook: EURUSD has been trading within 1.0700 and 1.0600 last week with another brief test to the support level at 1.0615 – 1.0600. However, this multiple bounce to the support has failed to bring any significant new highs in prices. The bullish flag pattern remains in play although there is scope for EURUSD to correct to the downside in the near term especially after price has broken out from the rising median line. Look for a reversal near 1.0700 in EURUSD which could mean a short term correction back to 1.0615 – 1.0600. A break below this support will extend the declines towards 1.0450. To the upside, if price continues to push higher, then watch for a continuation towards 1.0785, marking the completion of the bullish flag pattern.
Fundamental Outlook: It is a fairly quiet week for the eurozone with most of the economic data focusing on the flash PMI figures. Economists are expecting to see a broad pickup in activity across the board, which is likely to see further evidence of a recovery in the eurozone’s economy. Besides the flash PMI figures, the Ifo business climate data is also coming out this week and is expected to show another positive reading which will also point to the improving economic sentiment in Germany and the Eurozone. With no major market moving events coming up next week, the EURUSD is likely to take its clues from the larger market themes.
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