EURUSD Weekly Forex Forecast – 12th Sept to 16th Sept 2016 

Technical Outlook: Last week’s analysis we mentioned about EURUSD retracing to 1.1300. As expected, the ECB meeting sent the euro briefly higher but soon enough prices fell back sharply. The price action on the 4-hour EURUSD chart shows a potential head and shoulders pattern in the making, which could be very bearish for the euro. Watch for near term retracement towards 1.1260 – 1.1250, which is expected, after the breakout from the rising median line. Establishing resistance here could signal further declines with the initial support at 1.1145 – 1.1140 followed by a test to 1.1000. Alternately, this week, a close above 1.1300 could put this bearish bias at risk.

Fundamental Outlook: Next week, ECB President Mario Draghi will be speaking at an event which is likely to be a non-event unless Draghi offers something new, beyond what was said at last week’s ECB meeting. Eurozone’s final inflation figures will be released on Friday with expectations showing that headline inflation rose 0.20% while core inflation increased 0.80%.

EURUSD Weekly Forex Forecast – 12th Sept to 16th Sept 2016 – BEARISH

Looking at the overall fundamental and technical development of EURUSD, it looks like this Forex pair will likely be heading south for this coming week. Resistance are plentiful up north and support seems to be a distance away. In a directional call, we feel the Bears are likely to be more in control than the bulls for the 12th Sept to 16th Sept. Good luck trading this week and we look forward to your comments below.