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EUR/USD: outlook for February 13-19
2/10/2017

The pair has moved abruptly down. Political picture for the region looks tense. Investors are still worried that a far-right candidate can win French presidential election and take the county out of the euro area. In addition, German Finance Minister Wolfgang Schaeuble said that Greece should leave the euro area if it cannot fulfil its bailout commitments.

EUR/USD breached January support line in the 1.07 area and fell to 1.0640 (38.2% Fibonacci of this year’s advance). Below this point the euro will be vulnerable for a decline to 1.06 (50-day MA), 1.0580 (50% Fibo) and 1.0550 (bottom of the daily Cloud). Between 1.0550 and 1.05 there are many support levels formed by late November and early December lows. Here are also the targets of the broken trend channel. Resistance is at 1.0680 and in the 1.0715/25 area.

In the region’s economic calendar there will be many releases on Tuesday (German and the euro area’s Q4 GDP, German economic sentiment and the European economic forecasts). The ECB will publish accounts of its last monetary policy meeting on Thursday. Keep an eye on the news from the US as well – comments of Donald Trump and the Fed’s Chair Janet Yellen.



More:
https://fxbazooka.com/analytics/12434