Previous 8 days were all but positive for EURUSD, and the data came out quite disappointing for majority of players.
After kind of frenzy in expectations that Interest Rates will be Cut soon, first came the cold shower from the ECB , not cutting the rates even their mouths were full of it in previous weeks – check out my previous Article:
EURUSD Daily-After all the data and ECB decision-Are we on the road to Parity again?
Then we have witnessed USA data coming in quite inflationary, so much that we started hearing even possibility of additional interest rates rise in case of continuation in this direction.
Next week will be filled with Important Data coming from both – USA & EU.
The pair will continue to be driven by every single half important data, not to mention some really heavy ones….
Global political situation has it’s tall on the direction of EURUSD , and as long as the Crisis in the Middle East continues, expect USD strengthening .
The Technical Outlook :
As you can see from the Daily Chart, we have a potential steep Downtrend forming, and two Major points are in the game :
- Resistance at 1.07000 – If holds , we’ll have the Downtrend speeding up
- Support at 1.05900 – if Taken out, the road will be open for attack at first 1.05450, then comes 1.04900 and finally The Last line of Defence at 1.04150.
But more importantly, if all of the above happens, it will be a clear Signal that we are heading to Parity.
In the case that EURUSD spends more time ( like whole coming week ) in the range between 1.05900 and 1.07000 , we’ll have to reconsider this given View , and come up with possible outcomes.
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