The Euro put in an impressive performANCe last week as it rallied nearly 2 percent against the US Dollar over the five-day period. This marks the five-consecutive week of engulfing reversals, begging the question of whether the trend might snap again in the coming sessions.
The EURUSD traded higher 0.44 percent on Friday mirroring another dip in the Dollar index by roughly the same amount. Uncertainties in the US elections continue to stir volatility in the markets, with the latest estimates pointing towards a split government as investors price in more weakness for the buck.
A divided US Congress appears to have been welcomed by equity markets as Traders bet on the fact that a Republican Senate would likely put the brakes on any large corporate tax reforms. From a currencies standpoint, a split government lessens the odds of a larger than expected stimulus package relieving some pressure on the greenback. However, there is no doubt that a fiscal deal will be reached at some point which in turn limits the upside US Dollar to the benefit of the EURUSD bulls.
Meanwhile, in Europe, covid-19 continues to wreak havoc as more and more EU nations decide to go back into lockdown, threatening the economic outlook for the bloc. Another relief package is under discussion at the moment which if passed should put the Euro under pressure.
Looking at the technical picture, the EURUSD has resumed its uptrend on the daily chart, breaking above the 1.18522 resistANCe point on Friday. The pair seems to have enough momentum to make a test of the 1.19363 level in the coming sessions. That said we can expect strong resistANCe to surface around the 1.19 channel, having capped gains in the previous attempts to cross through in August.
(Chart Source: Tradingview 07.11.2020)
On the flip side, the immediate support for the EURUSD will be 0.236 Fibonacci retracement level at 1.18565, with the 1.18 psychologically round support level in extension below. The upcoming range for the pair will likely fall between the 1.19 and 1.18 levels. Traders may look to conservatively long the EURUSD in the run-up to the 1.19 mark before shorting the pair betting on a pullback in the near term.
Support & ResistANCe Levels:
R3 1.21974
R2 1.20000
R1 1.19601
S1 1.18565
S2 1.18000
S3 1.17273
Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.
本文标题：GOLDWELL：Daily Market Recap - EURUSD Weekly Forecast
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