EURUSD Weekly Forex Forecast – 19th to 23rd Sept 2016

Technical Outlook: EURUSD retraced to 1.1260 – 1.1250 as mentioned last week and price action broke through the head and shoulders neckline which saw the declines accelerating. By Friday’s close EURUSD closed at 1.1150 and is just a few pips away from the 1.1145 – 1.1140 support level. If EURUSD breaks this level in the coming week, we can expect to see stronger declines which could push EURUSD towards 1.1000. However, watch out for any potential spikes back to 1.1260 – 1.1250.

Fundamental Outlook: While the economic calendar from the Eurozone is fairly quiet, the euro is no doubt at risk heading into Wednesday’s FOMC meeting on September 21st. While the market consensus is for the Fed to keep rates unchanged at 0.50% at this week’s meeting there could be scope for a surprise rate hike which could severely undermine the markets this week. If the Fed does hold rates steady, that could be dovish for the USD, but the Fed could make up for it’s by coming out with a strongly hawkish statement. Regardless, expect increased in volatility in EURUSD this coming week.

EURUSD Weekly Forex Forecast – 19th to 23rd Sept 2016 – BEARISH

EURUSD has broken through the trendline and should likely continue heading south this coming. Stochastic is already into oversold territory but continue to point downwards. Bears might be running out of steam soon but indication is showing that it might have some room to go until the next support level which should likely hold out well for EURUSD.