EURUSD Weekly Forex Forecast -1st to 5th Oct 2018
The economic calendar for the week ahead will be dominated fresh monthly reports. The data will shed light on the final month of the third quarter. This will help investors to assess how various economies performed during this period. The week starts off with final services and manufacturing PMI reports from the Eurozone. Recent estimates put manufacturing PMI easing back while services PMI remained steady.
Data from Japan will see the release of the household spending and the average cash earnings. The two aspects will be crucial in shaping inflation expectations. While data from Switzerland is quiet for the week ahead, the data from the U.S. will keep the markets busy. The monthly ISM’s manufacturing and non-manufacturing PMI reports will be coming out. This is later followed by the monthly ADP private payrolls report and eventually culminate with the official payrolls data.
Chart set up:
The EURUSD currency pair posted strong declines on the week as the currency pair gave up the gains from the week before. The declines came on the back of investor concerns on the rising debt from Italy and also a stronger U.S. dollar.
Key support/resistance levels:
Support: 1.1547; Resistance: 1.1715
The euro currency broke out to the downside from the rising trend line last week. Price action also fell through the support level of 1.1715 to extend the declines. We anticipate that further declines could push the currency pair down to the new support at 1.1547. In the near term, there is a potential for the currency pair to post a modest rebound and to retest the breached support for resistance. If the euro currency manages to hold the support at 1.1547 we expect a reversal to the upside. However, failure to hold the support could mean the currency pair will extend further losses. Below 1.1547 support the EURUSD will be seen posting further declines to 1.1310 level. For the week ahead, the EURUSD is expected to be flat
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