EURUSD Weekly Forex Forecast – 8th to 12th May 2017
Technical Outlook: EURUSD maintained its bullish track last week as prices broke above the 1.0950 handle and is now within reach of testing the $1.1000 price level. The gains in the euro came on hawkish comments from ECB officials who said that interest rates could begin to rise if the Eurozone recovery continues at the current pace. The euro is also lifted by the fact that the French election outcome is showing a Macron victory.
However, technically, EURUSD is at risk of a downside correction. Watch the support level at 1.0950 which will now be critical. A close below this level could validate the rising wedge pattern on the 4-hour chart for EURUSD. The Stochastics is also printing a bearish divergence here. A break down below 1.0950 will signal a move towards 1.0735.
Fundamental Outlook: The euro will be most likely looking to another volatile open this Monday after Sunday’s final round of elections from France. It is going to be a face-off between Macron and Le Pen and the markets are currently in favor of a Macron victory which is already priced in. Unless the elections pose a surprise result which will be announced on Sunday at 2000 CET, the euro could be looking to open Monday with some gains. On the economic front, the eurozone takes a back seat with only the German factory orders due on Monday. On Friday, Germany’s preliminary GDP numbers for the first quarter will be coming out.
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EURUSD Weekly Forex Forecast – 8th to 12th May 2017
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