Weekly Technical Outlook: EUR/USD ; Market Forecasts for September 18th – September 22nd

• Resistance level 1.20288
• Pivot Level 1.19087
• Support Level 1.17707, 1.17495, and 1.16869

Technical Analysis

The EUR/USD pair attempted to breach the 1.2028 level keeping the stability of the daily close below it until the 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 1.1770 followed by 1.7495 levels on the near term basis. It is important to note that a retest of 1.9087 levels will complete confirmation, which will push the price to test the most important support for the short term trading at 1.1770 directly before any new attempt to change directions.

These levels represent the next trend keys, with the price action signaling two bar reversal and a bearish momentum at negative stability below resistance area. Stochastic settles clearly within the 42.0 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 the 1.1770 level to open the way towards targeting as a next main station. Breaching the levels once retested will turn the price to the bearish channel again and will lead the trading to the down side on the short and medium term basis.

Economic

• Consumer Price Index, Non-monetary policy’s ECB meeting
• Markit Services, Markit Manufacturing PMI
• Building Permits Change, Existing Home Sales , FOMC Economic Projections,
• Initial Jobless Claims, Baker Hughes US Oil Rig Count

Area of Interest

• Strong resistance at 1.2028 area and closed below resistance levels.
• Bearish two bar reversal rejection on trend line.
• Price action closed below trend line and oscillator below 42.0 levels indicating shift in momentum.
• At Flip Area on Daily

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