EURUSD Forecast and News


EUR/USD: Stuck in a bearish channel on the 15-min chart

EUR/USD's immediate bias remains neutral, with the exchange rate trapped in a bearish channel on the 15-minute chart. A move through the upper end of the falling channel would signal a resumption of the rally from Oct. 19 lows near 1.17 and open the doors for 1.18. 

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Technical Overview

EUR/USD's immediate bias remains neutral, with the exchange rate trapped in a bearish channel on the 15-minute chart. A move through the upper end of the falling channel would signal a resumption of the rally from Oct. 19 lows near 1.17 and open the doors for 1.18. 

However, a daily close above the Oct. 9 high of 1.1831 is needed to revive the broader bullish outlook. Alternatively, a break below 1.1760 could invite stronger selling pressure, yielding a deeper pullback to 1.1740.  The area around 1.1760 has offered support three times over the past 24 hours. 


Fundamental Overview

About this last, however, there are no news indicating progress, but House Speaker Nancy Pelosi announced Democrats had set a 48-hour deadline to clinch a deal.  The greenback maintained its sour tone across the FX board despite Wall Street being unable to hold on to early gains and turned red mid-US afternoon.

The macroeconomic calendar had little to offer. ECB’s President Christine Lagarde and Fed’s Chair Jerome Powell participated in different virtual events but made no relevant comments related to the current monetary policy. This Tuesday, Germany will publish the September Producer Price Index, while the US will release September Building Permits and Housing Starts for the same month. In general, the calendar will be light this week, which means the focus will remain on stimulus and other pandemic-related issues, and Brexit.



SPECIAL WEEKLY FORECAST

Interested in weekly EURUSD forecast? Our experts make weekly updates forecasting the next possible moves of the euro-dollar pair. Here you can find the most recent forecast by our market experts:

EUR/USD Weekly Forecast: It’s no time to panic, but get ready just in case

The EUR/USD pair put a halt to its advance and closed the week in the red, around the 1.1700 figure. The decline was the result of a dismal market’s mood, fueled by different pandemic-related developments.

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Editors' picks

EUR/USD: Stuck in a bearish channel on the 15-min chart

EUR/USD's immediate bias remains neutral, with the exchange rate trapped in a bearish channel on the 15-minute chart. A move through the upper end of the falling channel would signal a resumption of the rally from Oct. 19 lows near 1.17 and open the doors for 1.18. 

EUR/USD News

GBP/USD: 1.2970 guards immediate upside

GBP/USD consolidates losses from 1.3025 while bouncing off 1.2936. Confluence of 200-HMA, two-day-old ascending trend line challenges the pullback moves. 1.2863 can offer immediate support ahead of the monthly low.

GBP/USD News

USD/JPY holds gains above 105.50 amid positive S&P 500 futures

USD/JPY extends Monday’s recovery moves above 105.50, benefiting from gains in the S&P 500 futures and Treasury yields. The further upside, however, appears elusive amid a cautious tone on the Asian stocks heading into Tuesday's US fiscal stimulus deadline. 

USD/JPY News

Gold: Battle lines well-mapped ahead of US stimulus deadline

Gold (XAU/USD) remains in limbo, as it continues with the range play around $1900. A lack of progress and clarity on the US fiscal stimulus keeps the XAU bulls unmotivated. Meanwhile, the US dollar draws bids amid increased haven demand.

Gold News

WTI: Slips below $41.00 inside monthly ascending triangle

WTI remains pressured after stepping back from the resistance line of a short-term triangle. 50-bar SMA offers immediate support, 200-bar SMA adds to the downside filter. A clear break of $42.10 becomes necessary to convince buyers.

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EURUSD Yearly forecast

How could EURUSD move this year? Our experts make a EUR/USD update forecasting the possible moves of the euro-dollar pair during the whole year. Don't miss our 2020 EURUSD forecast!

EURUSD FORECAST 2020

In our EURUSD Forecast Price 2020, our dedicated contributors expect the bearish trend to slow down during the year. By the end of the year 2019, the average outlook for the pair was 1,1186. Read more details about the forecast.

From July 2019 to Jan 2020, the maximum level for the EURUSD (Euro US Dollar) was 1.1280 (on 10/08/19), and the minimum, 1.0896 (on 30/09/19).

MOST INFLUENTIAL POLITICAL EVENTS IN 2020 FOR EURUSD

2020 should be the year of change or at least, the year when things begin to change. The recent trade deals hint some relief in the trade war front, hence in growth’s concerns. Economic developments and central banks’ decisions will motorize action throughout the first half of the year. In November 2020, the US will go to the polls. That grants a shaky year-end in the financial world. Will Trump be able to retain its chair?.


Influential Institutions & People for the EUR/USD

The Euro US Dollar can be seriously affected by news or the decisions taken by two main central banks:

The European Central Bank (ECB)

The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability, so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council and the General Council. Christine Lagarde is the President of this organism. 

The Federal Reserve Bank (Fed)

On the other hand we found The Federal Reserve System (Fed) wich is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.


Christine Lagarde

Christine Lagarde was born in 1956 in Paris, France. Graduated from Paris West University Nanterre La Défense and became President of the European Central Bank in November 1st 2019. Prior to that, she served as Chairman and Managing Director of the International Monetary Fund between 2011 and 2019. Lagarde previously held various senior ministerial posts in the Government of France: she was Minister of the Economy, Finance and Industry (2007–2011), Minister of Agriculture and Fishing (2007) and Minister of Commerce (2005–2007).

Jerome Powell

Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.

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About EURUSD

The EURUSD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity is due to the fact that it gathers two main economies: the European and American (from United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EURUSD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.

Normally, it is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U.S. session. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.S. comes online. If there is important U.S. data we can expect quiet markets just ahead of the number. U.S. economic news have the ability to either reinforce an existing trend or reverse it depending on by how much it missed or beat expectations with the EURUSD news. By 5:00 GMT liquidity leaves the market once again as European traders close out positions and head home.

Related pairs

GBP/USD

The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs worldwide. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The pair is also called 'The Cable', reffering to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term was originated in the mid-19th century and it makes GBP/USD one of the oldest currency pairs in the world.

The popularity of the Pound Dollar is due to the fact that represents two strong economies: British and American (from United States of America). The Cable is a widely observed and traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. After the result of the Brexit referendum, where the majority of the British voted to abandon the European Union, GBP/USD has been suffering some turbulence in the Forex market as a consequence of the associated risks of leaving the single market.

USD/JPY

The USD/JPY (or US Dollar Japanese Yen) currency pair is one of the 'Majors', the most important pairs in the world. Japanese Yen has a low interest rate, normally used in carry trades, that's why is one of the most trades currencies worldwide. In the USD/JPY the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from United States of America) and Japanese economies.

Trading the USD/JPY currency pair is also known as trading the "ninja" or the "gopher", although this last name is more frequently used when reffered to the GBP/JPY currency pair. The US Dollar Japanese Yen usually has a positive correlation with the following two pairs: USD/CHF and USD/CAD. The nature of this correlation is dued to the fact that both currency pairs also use the US Dollar as the base currency, such as USD/JPY. The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan (BoJ) and the Federal Reserve Bank (Fed), face serious interest rate differential.