EUR/USD Forecast: Bullish as long as investors continue to ignore covid developments
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UNLOCK OFFEREUR/USD Current Price: 1.1861
- Record number of new COVID-19 contagions reported over the weekend may lead to risk-off.
- Speculative interest chose to sell the greenback ahead of the US presidential election.
- EUR/USD is technically bullish but needs to advance beyond 1.1915.
The EUR/USD pair closed the week with gains at 1.1860, advancing on Friday as speculative interest continued to sell the dollar amid caution ahead of the US presidential election. The shared currency found support in mixed growth figures, as Markit published the preliminary estimates of its October PMIs. Services output fell into contraction levels in the Union, with the German Services PMI came in at 48.9 while the EU index plunged to 46.2. Manufacturing activity, however, surprised to the upside, expanding to 58 in Germany from 56.4, and to 54.4 from 53.7 in the EU. US Markit indexes were generally upbeat, as the Manufacturing PMI improved to 53.3 from 53.2, while the services PMI beat expectations by jumping to 56 from 54.6.
Market players ignored record coronavirus contagions in several European countries and governments pledges of further restrictions. Record cases in France, Italy and Spain, among other countries, have resulted in curfews and focused lockdowns. More restrictions will likely be announced in the upcoming days and may finally take their toll on the common currency. Things in the US are no better, as the country reported a record high of 82,668 cases on Saturday.
This Monday the calendar will include the German IFO Survey for October, with the Business Climate seen contracting to 92.7 from 93.4. The US will publish the September Chicago Fed National Activity Index, New Home Sales for the same month and the October Dallas Fed Manufacturing Business Index.
EUR/USD short-term technical outlook
The EUR/USD pair is neutral-to-bullish according to the daily chart, as it got to close near a five-week high. In the mentioned time-frame, the pair is developing above all of its moving averages, with the 20 SMA gaining bullish strength, currently around 1.1760. Technical indicators hold within positive levels but lack directional momentum. In the shorter-term, and according to the 4-hour chart, the picture is quite alike, with the price holding above a bullish 20 SMA, but technical indicators heading nowhere around their midlines. A strong static resistance level comes at 1.1915, with bulls likely adding longs once beyond it.
Support levels: 1.1810 1.1760 1.1710
Resistance levels: 1.1870 1.1915 1.1950
View Live Chart for the EUR/USD
EUR/USD Current Price: 1.1861
- Record number of new COVID-19 contagions reported over the weekend may lead to risk-off.
- Speculative interest chose to sell the greenback ahead of the US presidential election.
- EUR/USD is technically bullish but needs to advance beyond 1.1915.
The EUR/USD pair closed the week with gains at 1.1860, advancing on Friday as speculative interest continued to sell the dollar amid caution ahead of the US presidential election. The shared currency found support in mixed growth figures, as Markit published the preliminary estimates of its October PMIs. Services output fell into contraction levels in the Union, with the German Services PMI came in at 48.9 while the EU index plunged to 46.2. Manufacturing activity, however, surprised to the upside, expanding to 58 in Germany from 56.4, and to 54.4 from 53.7 in the EU. US Markit indexes were generally upbeat, as the Manufacturing PMI improved to 53.3 from 53.2, while the services PMI beat expectations by jumping to 56 from 54.6.
Market players ignored record coronavirus contagions in several European countries and governments pledges of further restrictions. Record cases in France, Italy and Spain, among other countries, have resulted in curfews and focused lockdowns. More restrictions will likely be announced in the upcoming days and may finally take their toll on the common currency. Things in the US are no better, as the country reported a record high of 82,668 cases on Saturday.
This Monday the calendar will include the German IFO Survey for October, with the Business Climate seen contracting to 92.7 from 93.4. The US will publish the September Chicago Fed National Activity Index, New Home Sales for the same month and the October Dallas Fed Manufacturing Business Index.
EUR/USD short-term technical outlook
The EUR/USD pair is neutral-to-bullish according to the daily chart, as it got to close near a five-week high. In the mentioned time-frame, the pair is developing above all of its moving averages, with the 20 SMA gaining bullish strength, currently around 1.1760. Technical indicators hold within positive levels but lack directional momentum. In the shorter-term, and according to the 4-hour chart, the picture is quite alike, with the price holding above a bullish 20 SMA, but technical indicators heading nowhere around their midlines. A strong static resistance level comes at 1.1915, with bulls likely adding longs once beyond it.
Support levels: 1.1810 1.1760 1.1710
Resistance levels: 1.1870 1.1915 1.1950
View Live Chart for the EUR/USD
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