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Last week, our technical indicators suggested going Long at or below 1.06, setting a Stop Loss at 1.045, and going Short at or above 1.061, setting a Stop Loss at 1.08.
This week, the EURUSD price range was 1.0587 high set yesterday, Wednesday, and 1.0424 low, set this past Tuesday.
So, on Monday, we could have bought the currency pair at 1.045, selling it on an intraday trading at 1.0529, for 0.76% profit. Tuesday, we could have bought it at 1.045, selling it on an intraday trading at 1.0543, for 0.89% profit. Wednesday, we could have bought it at 1.0473, selling it on an intraday trading at 1.0586, for 1.08% profit. Thursday, we could have bought it at 1.0528, selling it on an intraday trading at 1.0562, for an extra 0.32% ROI.
Fundamental Overview
The EURUSD pair hovers around 1.0540 on Thursday, not far below its daily opening and confined to a tight trading range. The pair peaked at 1.0587 on Thursday, as the US Dollar shed ground following mixed United States (US) data, anyway showing the economic resilience of the world’s largest economy.
Profit-taking ahead of the long weekend in the US also took its toll on the Greenback. US markets will remain closed on Thursday amid the Thanksgiving holiday and are due to close early on Friday.
Meanwhile, European equities trade in the green, helping keep US futures afloat. Still, action across stock markets is restricted.
Other than that, the Eurozone published the November Economic Sentiment Indicator, which improved from 95.7 in October to 95.8. Consumer Confidence in the same period, however, deteriorated to -13.7 from the previous -12.4
Additionally, Germany published the preliminary estimates of the November Harmonized Index of Consumer Prices (HICP). Annual inflation was up 2.4%, matching the October reading and below the 2.6% anticipated by market participants. The monthly reading printed at -0.7%, down from the previous 0.4% and below the -0.5% expected.
For a detailed understanding of market trends, check out our Forex Market Analysis page, where we provide in-depth analysis of various currency pairs.
Technical Analysis
The EURUSD stays below 1.0550 after soft German inflation data.
The currency pair trades in negative territory slightly below 1.0550 on Thursday. Soft inflation data from Germany makes it difficult for the Euro to gather strength, causing the pair to stretch lower. US markets will remain closed in observance of the Thanksgiving Day holiday.
The EURUSD pair trades at the upper end on Wednesday gain, losing some ground on a daily basis but without clear directional momentum. In the daily chart, the pair remains below a firmly bearish 20 Simple Moving Average (SMA), which provides dynamic resistance at around 1.0625. The longer moving averages remain directionless, far above the shorter one, while technical indicators head nowhere within negative levels, skewing the risk to the downside.
The 4-hour chart shows bulls are losing interest. EUR/USD develops below a bearish 100 SMA, while the 20 SMA loses upward strength below the current level. Technical indicators, in the meantime, remain within positive levels but without clear directional strength. A break through 1.0510 should open the door for another leg south, albeit the US holiday will likely limit action until the Asian opening.
Support levels are at 1.0510, 1.0475, and 1.0425.
Resistance levels are at 1.0585, 1.0625, and 1.0660.
Next week
For next week, as noted in the following chart, the currency pair price closed the gap, and we believe wave “C” is almost over or already over. Now, There are 2 possible scenarios:
- Wave “C” is finally formed and the price will continue the upward movement. (More risky market entry)
- The price will still make a small movement to the nearest minimum, where we would recommend placing pending limit orders.
Hence, our technical analysis is suggesting going Long at or below 1.05750, setting a Stop Loss at 1.04, and going Short at or above 1.0560, setting a Stop Loss at 1.08.
As of 2:09 PM (GMT), the EURUSD was trading at 1.05378.
EURUSD insights
Pivot points are a technical indicator that traders use to predict upcoming areas of technical significance, such as support and resistance. They are calculated by averaging the high, low and closing prices of a previous period. That could be a day, a week or a month.
If a market is trading above its previous pivot point (known as P), it is seen as a bullish signal. If it is below, it is bearish.
EUR to USD forecast for tomorrow
EUR to USD forecast for tomorrow, Euro to US Dollar forecast on Friday, November, 29: exchange rate 1.065 US Dollars, maximum 1.081, minimum 1.049. EUR to USD forecast on Monday, December, 2: exchange rate 1.064 US Dollars, maximum 1.080, minimum 1.048. Euro to US Dollar forecast on Tuesday, December, 3: exchange rate 1.072 US Dollars, maximum 1.088, minimum 1.056. EUR to USD forecast on Wednesday, December, 4: exchange rate 1.066 US Dollars, maximum 1.082, minimum 1.050.
EUR to USD Forecast for Next Week
In 1 week, Euro to US Dollar forecast on Thursday, December, 5: exchange rate 1.059 US Dollars, maximum 1.075, minimum 1.043. EUR to USD forecast on Friday, December, 6: exchange rate 1.054 US Dollars, maximum 1.070, minimum 1.038. Euro to US Dollar forecast on Monday, December, 9: exchange rate 1.054 US Dollars, maximum 1.070, minimum 1.038. EUR to USD forecast on Tuesday, December, 10: exchange rate 1.060 US Dollars, maximum 1.076, minimum 1.044. Euro to US Dollar forecast on Wednesday, December, 11: exchange rate 1.061 US Dollars, maximum 1.077, minimum 1.045.
To stay updated with our latest forecasts and trading tips, visit our Forex News section regularly. Don’t miss out on our Expert Trading Tips for advanced strategies.
Until next article, wishing all of you wealthy trading!
Disclosures: The material provided herein is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any interests in the EUR/USD or any other securities. This overview may include or be based in part on projections, valuations, estimates and other financial data supplied by third parties, which has not been verified by Pedro Ferreira. Any information regarding projected or estimated investment returns are estimates only and should not be considered indicative of the actual results that may be realized or predictive of the performance of the EUR/USD or any underlying security. Further, Pedro Ferreira is not long or short in the currency pair. Past investment results of any underlying managers should not be viewed as indicative of future performance of the EUR/USD.
