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Weekly Technical Outlook: EUR/USD; Market Forecasts for August 21st – August 25th

By:
Sylvester Stephen
Published: Aug 21, 2017, 06:48 UTC

Resistance level 1.1822 Pivot Level 1.1721 Support Level 1.1633, 1.1574 and 1.14573 Technical Analysis The EUR/USD pair attempted to breach the 1.1822

Weekly Technical Outlook: EUR/USD
  • Resistance level 1.1822
  • Pivot Level 1.1721
  • Support Level 1.1633, 1.1574 and 1.14573

eurusd2

Technical Analysis

The EUR/USD pair attempted to breach the 1.1822 level keeping the stability of the daily close below it until end of the week, which keeps the correctional bearish trend scenario valid until now. The pair is waiting to resume the bearish wave that targets 1.1633 followed by 1.1574 levels on the near term basis. It is important to note that a retest of 1.1721 levels will complete confirmation, which will push the price to test the most important support for the short term trading at 1.1.1633 directly before making any new attempt to change directions.

These levels represent the next trend keys, with the price action signalling two bar reversal and bearish momentum at negative stability below resistance area. Stochastic settles clearly within the 33.0 areas to support the attempts to gather the negative momentum and confirm the attempt to reach the waited target. Therefore, our bearish trend expectations will remain valid and active on the short term basis, and the targets begin by surpassing 1.1721 level to open the way towards targeting the next main station. Breaching the levels after the retest will turn the price to the bearish channel again and will the trading to the down side on the short and medium term basis.

Economic

  • Chicago Fed National Activity Index, ZEW Survey
  • ECB President Draghi Speaks at Jackson Hole, Markit PMI Composite
  • New Home Sales, Initial Jobless Claims, Existing Home Sales, Jackson Hole Symposium
  • Durable Goods Orders ex Transportation, Baker Hughes US Oil Rig Count

Area of Interest

  • Strong resistance at 1.1822 area and closed below resistance levels.
  • Bearish two bar reversal rejection on trend line.
  • Price action closed below trend line and oscillator below 33.0 levels indicating shift in momentum.
  • At Flip Area on Daily time frame resistance levels.

For more detailed analysis from the author, please visit NoaFX.

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