EUR/USD: expected bounce from LB

Previous:

On Tuesday the euro/dollar closed down. The euro lost 87 points against the dollar (to 1.0698), whilst the British pound lost 113 points (falling to 1.2656). For me these were both classic corrections after a real strengthening for both currencies.

Market expectations:

We should mark out the industrial manufacturing data in the UK and the US oil reserve statistics as the main events on the calendar today. The first will have an effect on the pound and the second will have an effect on oil and commodity currencies. Via the crosses there will be price fluctuations of the key pairs against the dollar.

The euro has almost returned to the balance line. For Wednesday I’m looking at a restoral of the price to 1.0772 according to a wave structure. Here long positions can be closed and we can head off the market for when Draghi speaks at his ECB press conference on Thursday. Instead of Draghi I wanted to write Trichet, but why? Maybe he will make an announcement in the coming days.

Day’s News (GMT+3):

10:00, German industrial production in October;

11:00, SNB currency reserves in November;

11:30, UK housing price index from Halifax for November;

12:30, UK production in the manufacturing sector and industrial manufacturing data for October;

18:00, BoC December interest rate decision, UK November GDP from NIESR, US open vacancies in October from JOLTS;

18:30, oil and oil products reserves for the week ending 3rd December;

23:00, US consumer financing in October.

Technical Analysis:

Euro/ rate on the hourly. Source: TradingView dollar

Intraday forecast: minimum: 1.0700, maximum: 1.0772, close: 1.0753.

As I expected, the euro/dollar updated the session minimum and then fell. The rate fell below my expected forecast of 1.0734. The support at 1.0730 didn’t hold and due to a general strengthening of the dollar, the price fell to 1.0698.

The pair’s fall stopped near 90 degrees. In accordance with my forecast, I expect a bounce to 1.0772 from the LB (the average line at 55). There is a little bit of worry about the euro/pound, so at trade opening in Europe I’ve gone for a downward movement to 1.0700. The cross rate isn’t looking in great shape for a growth. If the 90th degree will be broken (closing of the hour below 1.0690), then it would be better to stave off euro purchases. We will have to wait for a rebound to the 122-135 degree zone.

Source:: EUR/USD: expected bounce from LB

Won't your trader friends like this?
Alpari
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

*