EURUSD: Move in a Falling Channel and Seeling Pressure Continue
The NFP report released on Friday showed that the US economy added 228,000 new jobs in November, above expected, but also that the previous month’s figure suffered a downward revision, from 261K t0 244K. The unemployment rate unchanged at 4.1%, while wages grew above previous, but below expected. MoM, average hourly earnings surged by 0.2%, and by 2.5% from a year earlier. This last is a major drag on inflation and could affect the pace of rate hikes in 2018.
It is almost certain that FED will increase the rates and this has been priced by the market players long ago. 2018 rate hikes are in focus now.
On the other hand, we have ECB and Draghi factors. But we do not think they would put something new on to the table.
EURUSD Forecast And Technicals:
On the bigger chart timeframes:
Current Price: 1.17690
Weekly Chart: EURUSD ended the week in the lower Bollinger Band ( Below EMA 20). RSI is moving towards bearish territory headed South.
Daily Chart: It is below EMA 50. 1.17100 is the EMA 100 Support. It is inside the cloud.
H4 Chart: RSI value is 44 and in the bearish territory. Price is below EMA 50, 100 AND 200. Clear bearish view.
We see a falling channel on the H1 Chart.
Price is likely to test the upper line of the channel 1.17800. It needs to break above the channel to get rid of the selling pressure. If it fails to break, 1.17100 will be tested.
Key Levels:
On the upper side: 1.18100, 1.18400 and 1.18800
On the downside: 1.17100, 1.16800 and 1.16500
We will keep eye on 1.17800 ( channel breakout level ) on Monday.
It is almost certain that FED will increase the rates and this has been priced by the market players long ago. 2018 rate hikes are in focus now.
On the other hand, we have ECB and Draghi factors. But we do not think they would put something new on to the table.
EURUSD Forecast And Technicals:
On the bigger chart timeframes:
Current Price: 1.17690
Weekly Chart: EURUSD ended the week in the lower Bollinger Band ( Below EMA 20). RSI is moving towards bearish territory headed South.
Daily Chart: It is below EMA 50. 1.17100 is the EMA 100 Support. It is inside the cloud.
H4 Chart: RSI value is 44 and in the bearish territory. Price is below EMA 50, 100 AND 200. Clear bearish view.
We see a falling channel on the H1 Chart.
Price is likely to test the upper line of the channel 1.17800. It needs to break above the channel to get rid of the selling pressure. If it fails to break, 1.17100 will be tested.
Key Levels:
On the upper side: 1.18100, 1.18400 and 1.18800
On the downside: 1.17100, 1.16800 and 1.16500
We will keep eye on 1.17800 ( channel breakout level ) on Monday.
