EUR/USD Weekly Technical Analysis 6 March 2017 – Waiting for News and Data
EUR/USD spot: 1.0615
Support: 1.0574, 1.0552, 1.0492
Resistance: 1.0803, 1.0720, 1.0624
Below 1.0624: Bias for short trades with tight stops and initial targets of 1.052 and 1.0492.
Above 1.0624: Bias for long trades with tight stops and initial targets of 1.0664 and 1.072.
Once the range is broken on either side, larger trades are likely to set-up.
The ECB Rate Decision will Dominate this Week
The EURUSD remained rangebound last week as uncertainty grew. Sentiment is only marginally in favour of USD bulls, but price action appears to indicate the market is long USD.
This week the ECB will announce its rate decision on Thursday and US Non-Farm Payrolls will be released on Friday. The ECB is expected to make no changes to its rate, but the announcement will be accompanied by forecasts for growth and inflation in the Eurozone. A lower than expected NFP number is now the only factor likely to prevent a rate hike by the Fed next week.
Other news the market is watching out for is more clarity on tax cuts, infrastructure spending and budget cuts in the US, as well as the Dutch and French election campaigns.
The Long-Term Chart Remains in a Sideways Range
The weekly chart has traded sideways to slightly lower for the past two years. Volatility has drifted lower as the market tests the lower side of the range. With significant resistance on the upside the more likely break will be to the downside – however, Euro rallies can still take place within this pattern.
EUR/USD Weekly chart
The market spent much of the past week pushing through the 1.0602 resistance level, but with no follow through. That resistance level has now moved to 1.0624, and is a key pivot level. A decisive move through that level will target 1.0803 but will encounter light resistance at 1.064 and 1.0720 along the way.
Euro Rallies from Oversold Positions are Likely to Continue
Given the overall bias toward USD strength, the market appears to be long dollars, and hence we have seen strong Euro rallies from oversold positions and from support at 1.0492. This is likely to continue until the news flow shifts in support of one currency or the other.
EUR/USD 4-Hour Chart
Get the latest fundamental analyses, technical analyses and the most up to date Forex news catered to your interests.
Sign up for our weekly news and analysis newsletter.
Risk Disclosure: The data contained in eurusd.co may not always be real time and accurate. It is not provided by the official authorities or exchanges but by the market makers.
eurusd.co, its owners, managers, employees and other associated bodies are not responsible and won’t be held responsible for any loss or damage that may occur as a result of using the information on this site including, but not only quotes, charts and signals.
Please be aware that trading the financial markets is one of the riskiest investment forms possible and may result in substantial losses.