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EUR/USD Daily Fundamental Forecast – October 19, 2016

By:
Colin First
Updated: Oct 19, 2016, 02:29 UTC

The bearish pressure that was seen on the pound for the past couple of weeks seems to have been shifted to the euro over the past few days as the EURUSD

EUR/USD Daily Fundamental Forecast – October 19, 2016

The bearish pressure that was seen on the pound for the past couple of weeks seems to have been shifted to the euro over the past few days as the EURUSD pair cannot seem to be able to catch a bid even if it tried its best. Even some USD weakness seen across the board cannot help the pair to pick itself off the lows firmly and make a serious bounce as it continues to languish near the lows of the range for the past couple of days and has not been able to break through 1.1030 cleanly and make its move upwards towards the top of the range. Any move towards 1.1030 has been met with a lot of selling which have pushed back the pair towards the 1.0950-70 region.

The same was seen yesterday as the pair made an attempt towards 1.1030 during the middle of the Euro session but it was largely unsuccessful and the release of the US CPI data further weakened the euro and pushed it towards 1.0960. The strong support in that region held well but the pair has had only a weak bounce so far towards 1.1000 despite the broad USD weakness during the Asian session so far as the markets await the Chinese GDP.

EURUSD Hourly
EURUSD Hourly

Looking ahead to today, there is no major news to be released from the Euro region for today though there is the building permits data from the US to be released later. We do not expect any major market movements surrounding this data release and the bulls will be seriously concerned about the continuing weakness of EURUSD despite their best efforts to lift off this pair from the range lows. If the pair cannot catch a bid during the times of USD weakness, then it would mean that the pair would come under some serious pressure when the USD strength returns eventually. We advise traders who are bullish on this pair to be cautious while trading and if they do want to go long, then they should try and pick the trade at the range bottom. Those who are bearish can wait until the range bottom is clearly broken.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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