Forex Forecast: 29 November – 3 December 2021

 

EURUSD Rates Week in Review

Happy Thanksgiving every one, and hoping you are enjoying this day with your close ones!

Last week, our technical indicators suggested to go Long at or below 1.1416, setting a Stop Loss at 1.1280, and to Short the currency pair at or above 1.1450, setting a Stop Loss at 1.16.

This week, EURUSD price range was 1.1293 high, set this past Monday, and 1.1185 low, set yesterday, Wednesday. Having kept our trading strategy discipline on our past week technical analysis recommendations, Monday, we could have bought the currency pair at 1.1282, selling it on an intraday trading at 1.1291, for 0.08% profit.

Fundamental Overview

The EURUSD is up on a quiet Thursday, trading in the 1.1220 price zone. Demand for the greenback eased after the currency reached fresh yearly highs against the EUR and multi-month highs against other major rivals. Nevertheless, the corrective retracement seems to be short-lived, as the American dollar retains its intrinsic strength.

Volumes are thin, with US markets closed due to the Thanksgiving holiday, which will also keep the US calendar empty today. In Europe, Germany released the second estimate of The Q3 Gross Domestic Product, downwardly revised from 2% to 1.7%. Also, the European Central Bank published the Monetary Policy Meeting Accounts. The document had no impact on price, as it repeated the well-known patient stance from ECB’s policymakers.

Technical Analysis

EURUSD continues to edge higher on Thursday and trades in the positive territory above 1.1220. Account of the European Central Bank’s Monetary Policy Meeting showed that policy had to be patient in the face of elevated uncertainty around medium-term prospects.

 

The EURUSD pair traded as high as 1.1229 before retreating, with its bearish potential intact. The 4-hour chart shows that the pair is once again retreating from around a bearish 20 SMA, while technical indicators corrected oversold conditions before turning flat within negative levels, a sign of absent buying interest.

The pair will likely resume its decline once below 1.1205, the immediate support level, with a more relevant one in the 1.1160 price zone. Still, and given the US holiday, chances of such a slide are quite limited for the rest of the day.

Support levels are at 1.1205, 1.1160, and 1.1120.

Resistance levels are at 1.1250, 1.1295, and 1.1340.

For next week, according to our technical analysis illustrated in the following chart, it is recommending to go Long at or below 1.1250, setting a Stop Loss at 1.11917, and to Short the currency pair at or above 1.13176, setting a Stop Loss at 1.1360.

 

As of 3:06 PM (GMT), the EURUSD was trading at 1.12137.

 

EUR to USD forecast for tomorrow: Euro to Dollar forecast on Friday, November, 26: exchange rate 1.1159 Dollars, maximum 1.1326, minimum 1.0992. EUR to USD forecast on Monday, November, 29: exchange rate 1.1173 Dollars, maximum 1.1341, minimum 1.1005. Euro to Dollar forecast on Tuesday, November, 30: exchange rate 1.1117 Dollars, maximum 1.1284, minimum 1.0950. EUR to USD forecast on Wednesday, December, 1: exchange rate 1.1043 Dollars, maximum 1.1209, minimum 1.0877.

 

In 1 week, Euro to Dollar forecast on Thursday, December, 2: exchange rate 1.1094 Dollars, maximum 1.1260, minimum 1.0928. EUR to USD forecast on Friday, December, 3: exchange rate 1.1088 Dollars, maximum 1.1254, minimum 1.0922. Euro to Dollar forecast on Monday, December, 6: exchange rate 1.1046 Dollars, maximum 1.1212, minimum 1.0880. EUR to USD forecast on Tuesday, December, 7: exchange rate 1.0974 Dollars, maximum 1.1139, minimum 1.0809. Euro to Dollar forecast on Wednesday, December, 8: exchange rate 1.0968 Dollars, maximum 1.1133, minimum 1.0803.

Until next article, wishing all of you Happy Trading and a fantastic Thanksgiving day!

 

 

 

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.

 

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