EUR/USD End Of Week Outlook
Shain Vernier • 1 min read
It has been an active four sessions for the EUR/USD , featuring a furious sell-off and robust rally. The trend of enhanced participation is likely to continue through the Friday session. During the coming U.S. overnight, ECB President Mario Draghi is scheduled to speak and the Eurozone CPI (Oct.) is due out. With so many primary market drivers on tap, we are likely in for action by the weekly closing bell.
In addition to Draghi and CPI, the Brexit transition process rolls on. Uncertainty from a deal/no deal U.K. exit from the E.U. has brought fierce volatility to the forex. Be sure to stay tuned to FX Leaders for real-time Brexit analysis as relevant news items break.
EUR/USD Technical Outlook
Daily 38% Fibonacci retracements have been in play across the financial markets, from the USD Index to WTI crude oil. The EUR/USD is no different, having tested the daily Current Wave 38% retracement (1.1324) a bit earlier.
Here are the key levels to watch for the Friday session:
- Resistance(1): 38% Current Wave Retracement, 1.1324
- Support(1): Spike Low, 1.1215
- Support(2): Psyche Level, 1.1200
Overview: Tomorrow’s forex session will be dominated by Brexit fallout, Draghi, and the Eurozone CPI. With no primary market movers facing the USD scheduled, fundamentals out of the E.U. and U.K. will be driving participation. Given the one-sided dynamic, rates can move either up or down from current levels.
However, if price closes beneath the 1.1325 handle for today’s session, then a bearish bias will certainly be warranted. A selloff may ensue by Friday’s closing bell, possibly testing the Spike Low (1.1215). In the event that this scenario unfolds, high-probability long scalps from the 1.1200 area will come into play for the Friday U.S. session or early next week.