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EUR/USD Daily Fundamental Forecast – October 24, 2016

By:
Colin First

EURUSD continues its slow trickle downwards that has continued through Friday and today morning as well. Last week, we saw a brief period of 2-3 days that

EUR/USD Daily Fundamental Forecast – October 24, 2016

EURUSD continues its slow trickle downwards that has continued through Friday and today morning as well. Last week, we saw a brief period of 2-3 days that had USD weaken across the board but even then, the pair could not manage a decent bounce and the lack of direction and timeline on the talk about QE tapering from the ECB President Draghi added to the burden on the euro and it slowly began its descent through 1.0950 and then through 1.0900 and it has not been able to make its way past 1.0900 since Friday.

EURUSD Hourly
EURUSD Hourly

On Friday, it continued its trickle downwards though the moves have not been large. It seems to be consolidating between 1.0850 and 1.0900, looking very heavy but at the same time, looking very lazy as well as it does not seem too intent to move in any specific direction. It sits at 1.0867 as of this writing and looks set to test 1.0830 in the near future. The bears do not seem to be in a hurry with the euro and the slight fall today morning has more to do with consolidation and general USD strength than any specific news over the weekend.

Looking ahead to today, there is not much news around for the whole of the day and we expect the prices to be dominated by the flows. We are also in the last week of the month when the economic data releases are few in number and the prices are dominated by flows and month end settlements and squaring which can push and pull the prices of EURUSD in either direction without any fundamentals to support the moves. As said above, EURUSD looks set to test 1.0830 but for that, it has to break through 1.0850. The bulls may be lucky to get a bounce towards 1.0900 but thats as far as they can get for now, if at all there is a bounce. Expect slow trickle between 1.0830 and 1.0900 for today with no drastic moves in either direction.

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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