EURUSD Weekly Forex Forecast – 16th to 20th Oct 2017
Technical Outlook: The EURUSD was seen posting gains last week as price action broke out from the descending wedge pattern. The rally towards 1.1880 level marks the upside target from this breakout. By Friday’s close, EURUSD attempted another rally but failed short off testing the 1.1880 level once again. This suggests some downside in EURUSD as price action is now likely to push lower to the support level that can be established at 1.1765. A break down below this support could extend further declines in EURUSD. Traders should also note that last week’s rally to 1.1880 marks the formation of the right shoulder in the EURUSD with the neckline support seen at 1.1691. This potentially suggests the head and shoulders pattern in the making and could signal a decline if EURUSD breaks down below 1.1691.
Fundamental Outlook: Economic data from the Eurozone remains light this coming week. The week starts off with the German wholesale price index followed by the ZEW economic sentiment report as well. The Eurozone’s statistics office, Eurostat will release the final inflation figures for the month of September. No changes are expected following the flash estimates and the data is expected to show inflation in the Eurozone staying stable. The German Bundesbank will be releasing the monthly report this week as well. With the lack of economic data to go by, investors are likely to fall back on the political developments in Spain. Last week the Catalonian parliament stopped short of declaring independence. This was seen as a positive for many in the region and dialogue is expected to continue. For the moment, the risks are low but any speculation or rumours could make the euro volatile.
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EURUSD Weekly Forex Forecast – 16th to 20th Oct 2017
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