On Wednesday, despite a whole series of data from Europe and the US data, we did not get a definite answer as to the future direction of the currency pair discussed. It is worth mentioning that the PMI for the euro zone's biggest economy, and for the whole euro zone were better than expected. In contrast, US data proved mixed, the reading of ADP was worse than expected, while the ISM services index surprised positively. Particularly noteworthy are data from the US, which may cool expectations on the September interest rate hikes.
On Thursday, there are not many data that can show the right direction and thus the situation in the EUR / USD pair should be decided only on Friday. During the last session of the week, we will see data on changes in employment in non-agricultural sectors and the size of the unemployment rate in the United States.
Forecast for Thursday:
The situation at present is not clear. On Tuesday, there was a breakthrough level of 1.0916, which was the lower limit prior to consolidation. However, the declines stopped today at 1.0847 and supply ultimately led to the test zone support levels at 1,0808-31. The situation has not changed and must be examined in two ways: if tomorrow comes to overcome the resistance level at 1.0916 then we can count back toward the 1.0990 level. Otherwise, the maintenance of a resistance below 1.0916 may result in declines in around 1.0869. In the case of overcoming support, next target will be 1.0847, and at least Wednesday zone 1,0808-31 support levels.
Summarizing the above facts, we can conclude that tomorrow currency pair should move up in the subsequent consolidation.
So much for now you can write on the currency pair discussed. In my opinion, investors' eyes will be focused on Friday's US data that may be an impulse to determine the direction in the medium term.
On Thursday, there are not many data that can show the right direction and thus the situation in the EUR / USD pair should be decided only on Friday. During the last session of the week, we will see data on changes in employment in non-agricultural sectors and the size of the unemployment rate in the United States.
Forecast for Thursday:
The situation at present is not clear. On Tuesday, there was a breakthrough level of 1.0916, which was the lower limit prior to consolidation. However, the declines stopped today at 1.0847 and supply ultimately led to the test zone support levels at 1,0808-31. The situation has not changed and must be examined in two ways: if tomorrow comes to overcome the resistance level at 1.0916 then we can count back toward the 1.0990 level. Otherwise, the maintenance of a resistance below 1.0916 may result in declines in around 1.0869. In the case of overcoming support, next target will be 1.0847, and at least Wednesday zone 1,0808-31 support levels.
Summarizing the above facts, we can conclude that tomorrow currency pair should move up in the subsequent consolidation.
So much for now you can write on the currency pair discussed. In my opinion, investors' eyes will be focused on Friday's US data that may be an impulse to determine the direction in the medium term.