EUR/USD: pinbar formed on the daily


On Thursday the USD managed to strengthen throughout the market during the American session. This allowed the sellers to close the daily candle down for the euro (pinbar). The US stats came out decent, but I think that the strengthening of the dollar was caused by technical factors and not fundamental ones. The euro dropped from its 1.0942 maximum to 1.0883.

Market expectations:

In my forecast I’ve gone for a V shaped formation. It’s not worth being too serious with it since the news breaks all the patterns. Let’s bear in mind that there’s some important events planned for this Friday.

On Friday market participant attention will be on US Q3 GDP figures. The preliminary GDP figures have a powerful effect on all the markets. It’s expected that the US economy in Q3 grew by 2.5% YoY. The assessment is a high one, so if the data doesn’t reach the forecast, the dollar will crumble throughout the market.

Day’s News (GMT+3):

10:00, Swiss economic barometer from KOF for October;

10:30, ECB’s Coeure to speak;

15:00, German October CPI;

15:30, US Q3 GDP and labour force cost for Q3 of 2016;

17:00, US reassessed consumer confidence index and inflation expectations from Michigan university for October;

20:00, US drilling rigs from Baker Hughes.

Technical Analysis:

Intraday forecast: minimum: 1.0869, maximum: 1.0911 (current Asian), close: 1.0894.

Euro/dollar rate on the hourly. Source: TradingView

The euro didn’t make it too the calculated level. Time was lost on the European session during the rise of the euro bulls to 1.0942. From here the price dropped to 1.0833. In Asia the pair is trading at around 1.0903. Since a pinbar has formed on the daily, I’m expecting to see the euro weaken further to 1.0868. If there were no upward correction from 1.0833, we could be looking at a target of 1.0851. If the US GDP figures meet market expectations, we can expect the price to fall to 1.0851. I reckon that the market will sit in a sideways until next Friday when the NFP comes out.

Source:: EUR/USD: pinbar formed on the daily

Won't your trader friends like this?
About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply