EURUSD Weekly Forex Forecast – 6th to 10th August 2018
Fundamentals Outlook: The economic calendar for the week ahead takes a quiet turn. No major releases of importance are lined up this week. From the U.S. the producer prices index data is due to come out on Thursday followed by the consumer price index data on Friday. Given the recent slowdown in the core PCE data for the second quarter, investors will be looking for any further clues of potential weakness in the consumer price reports. Elsewhere, data from the Eurozone is limited to the German industrial production and trade balance figures. The eurozone Sentix investor report and factory orders from Germany will be due earlier in the week. A quiet week from Japan will see only the Bank of Japan releasing its summary of opinions.
Chart set up: The EURUSD currency pair managed to turn higher over the week as price action briefly tested the resistance level at 1.1740. However, failure to break past this level pushed the currency pair lower. The break down below the previously established support at 1.1627 saw the common currency extending the declines.
Key support/resistance levels: Support: 1.1553; Resistance: 1.1627
Commentary: With the economic data for the week ahead being sparse, the currency pair is expected to maintain its longer term sideways range. The break down below 1.1627 support is now seen pushing the currency pair lower to the next support level at 1.1553. Any rebound is expected to stall near 1.1627 which could now serve as resistance.
The currency pair is expected to continue its consolidation but the declines are likely to stall near 1.1553. A rebound off this level could potentially set the tone for an upside breakout from the longer term range of 1.1700 and 1.1500. However, this breakout needs to be accompanied by strong fundamentals. For the week ahead, the EURUSD currency pair is expected to remain flat within 1.1553 support and 1.1627 resistance.
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