EURUSD Weekly Forex Forecast – 5th to 9th Mar 2018

Technical Outlook: The EURUSD was seen posting declines last week but price action reversed those losses towards the latter part of the week. The overall trend remains flat with prices recovering the declines from the early part of the week towards Friday’s close. The EURUSD was seen rising back to the breached resistance level at 1.2331 – 1.2326 level on Friday. We expect to see a reversal taking place at this level as the EURUSD is expected to resume the short term declines. With the retest of the lower support at 1.2070 still pending, we expect to see the declines coming through. The bias changes in the event that the EURUSD manages to close above 1.2362 resistance.

Fundamental Outlook: Data from the Eurozone is quiet with the week ahead shifting focus to Thursday’s ECB meeting. The meeting will see officials releasing the quarterly projections as well. Following the EU commission’s forecasts, officials are expected to remain upbeat on growth. However, inflation and unemployment remain two main weaknesses for the ECB. The January meeting minutes released few weeks ago showed that central bank officials were reluctant to change the language on forward guidance. This could potentially indicate a somewhat toned down meeting this Thursday.

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