mlawson71 wrote: Mon Jan 27, 2020 12:17 am The market will open soon, let's see whether the depreciation will continue.

Yep. Still hugely bearish but we'll definitely see a decent pullback (towards the upside) before it continues south. Let's see how it goes.

EUR/USD Forecast: Bearish pressure remains intact ahead of IFO data

EUR/USD Current Price: 1.1025

• Shared currency struggled to take advantage of mixed PMI data.
• Risk-off mood allowed USD to outperform its European counterparts.
• EUR/USD could stage a technical correction before stretching lower.

The broad-based USD strength weighed on the EUR/USD pair on Friday and dragged it to its lowest level since December 2nd at 1.1020. The mixed PMI data from the euro area made it difficult for the shared currency to show resilience against the USD, which gathered strength as a safer alternative amid heightened fears over coronavirus becoming a global epidemic.

The data published by IHS Markit revealed that the business activity in the manufacturing sector in the eurozone is expected to contract at a softer pace in January than it did in December. However, the Services PMI in the same period fell to 52.2 from 52.8 to keep the Composite PMI unchanged at 50.9. Meanwhile, European Central Bank President Christine Lagarde, who has adopted a so-called owlish stance, on Friday noted that they have not yet seen a transmission from wages to inflation. On Monday, IFO’s business sentiment data from Germany will be watched closely by investors.

EUR/USD short-term technical outlook

Following Friday’s drop, the RSI indicator on the 4-hour chart fell below the 30 mark to suggest that the pair has become technically oversold and could stage a rebound before extending its losses. However, the 100 SMA and the 200 SMA made a bearish cross on the 4-hour chart, supporting the view that sellers are likely to remain in control of the pair’s action.

Support levels: 1.1020 1.1000 1.0980

Resistance levels: 1.1070 1.1140 1.1180

Source: https://www.fxstreet.com/analysis/eur-u ... eetreports

The pair remains bearish but it is yet to break out below 1.1000 which will likely happen later this week.

It dropped to 1.1000 as I thought it would, I think it will break out below that level and continue depreciating toward 1.0980.

mlawson71 wrote: Tue Jan 28, 2020 11:29 pm It dropped to 1.1000 as I thought it would, I think it will break out below that level and continue depreciating toward 1.0980.

Good call brother

EUR/USD challenges lows near 1.1000, FOMC in sight

• EUR/USD loses the grip and approaches 1.10.
• German Consumer Climate improves in February.
• The FOMC meeting will be the salient event later on Wednesday.

The bearish sentiment around the single currency stays well and sound so far this week and is now forcing EUR/USD to test the psychological mark at 1.1000 the figure following the opening bell in Euroland.

EUR/USD ignores German data, focused on the Fed

The pair has resumed the downside on Wednesday following the tepid recovery on Tuesday’s session. The focus of attention has once again shifted to a potential (and sustainable) break below the 1.10 level.

As usual, the improved sentiment in the greenback continues to exert further downside pressure on the spot. In fact, auspicious results in the US docket as of late have somewhat mitigated speculations that the apparent loss of momentum in the economy could have gathered pace, all morphing into further legs to the buck, which trades in the area of 2020 highs above 98.00 the figure when gauged by the US Dollar Index (DXY).

In the meantime, risk trends continue to alternate direction on the back of headlines from the Wuhan virus and its potential effects on the global growth. The recent drop in US and German yields have dragged the differential spread to sub-200 pts for the first time since October 2017 without triggering any (upside) reaction EUR.

Earlier in the session, German Consumer Climate tracked by GfK improved to 9.9 for the month of February, although the euro has practically ignored the results. Later on Wednesday, the Federal Reserve is expected to leave the Fed Funds Target Range unchanged at 1.50%-1.75%, leaving the bulk of the attention to Chief Powell’s views at his press conference.

What to look for around EUR

The pair remains well under pressure and continues to put the 1.1000 support to the test. Dynamics around the buck are expected to remain the exclusive driver of the pair’s price action for the time being along with alternating risk appetite trends in response to developments from the Wuhan coronavirus. On another scenario, the ECB is expected to finish its strategic review (announced last Thursday) by year-end, leaving speculations of any change of the monetary policy before that time pretty flat. Further out, some better-than-expected results in the euro region as of late seem to have lent support to the idea that the bloc could have left the worst behind, although that view looks premature, to say the least.

EUR/USD levels to watch

At the moment, the pair is retreating 0.19% at 1.1001 and a breakdown of 1.0998 (weekly/2020 low Jan.28) would target 1.0989 (low Nov/14 2019) en route to 1.0981 (monthly low Nov.29 2019). On the flip side, the next hurdle aligns at 1.1067 (100-day SMA) seconded by 1.1088 (55-day SMA) and finally 1.1127 (200-day SMA).


Source: https://www.fxstreet.com/news/eur-usd-c ... 2001290859

It is still testing 1.1000 - 1.0990, it is possible to form a correction before the move south continues eventually.

I am selling EURUSD again and my target 1.10 level again. What do you think about it?
I think before further upside correction it may take some downside momuntum towards 0.09 level again.

EUR/USD is forming a correction indeed. I think it will climb back up to 1.1080.

fxsvps wrote: Fri Jan 31, 2020 4:17 am I am selling EURUSD again and my target 1.10 level again. What do you think about it?
I think before further upside correction it may take some downside momuntum towards 0.09 level again.

Yep, sell again after the correction