Weekly Look back:

In 1st week of May, the Euro remained weak against the USD to trade at 1.1391. The USD lost momentum against the bucket of other currencies on worse than expected economic figures. The unemployment rate released as per expectation 5% but U.S. non-farm payrolls (NFP) report showed a gain of 160,000 jobs after a forecast of 205,000 jobs. The high to low movement in the pair was 235 pips, while it lot 65 pips from the opening price of 1.1460. Last week, the pair placed a high of 1.1616 and low of a 1.1385.

Weekly Forecast (9th – 13th May, 2016):

In 2nd week of May, the market is likely to trade sideways before release of any major event in upcoming week. Fundamentally in upcoming week, the investors will base their trading decisions mostly on the U.S unemployment rate and non-farm payroll figures released in previous week.

Fundamentally in upcoming week, Eurozone is about to release mixture of low impacted economic figures but German Prelim (Gross Domestic Product) GDP q/q will be worth to watch. The advance GDP of 0.3% was seen in 4th Quarter of 2015. Currently, we could see a stronger figure of +0.6% in line with the preliminary Eurozone release. Following event will be in consideration of investors throughout the week.

 

Economic Events

Monday

Eurogroup meetings:

German Factory Orders

Sentix Investor Confidence

Tuesday

German Industrial Production

German Trade Balance

French Industrial Production

Thursday

French Final CPI

Industrial Production

Friday

German GDP

German final CPI

French Non-Farm Payrolls

Italian GDP

GDP

 

Technical Analysis

Technically, the pair is trading at 1.1402 and holds above a 61.8% Fibonacci support level of 1.1370. The EURUSD is likely to find resistance at 1.1465 initially and 1.1525 onward. Moreover, the support prevails at 1.1360. The breakage of support level is likely to add further selling until 1.1265.

     EURUSD WEEKLY

Trading Range:

1.1610 – 1.1265

Technical Levels

S1:  1.1279

S2: 1.1221

S3: 1.1127

Pivot Point: 1.1372

R1: 1.1460

R2: 1.1524

R3: 1.1617  

Technical Summary

Neutral to Slightly Bearish

2 thoughts on “EURUSD Market Updates (9th – 13th May, 2016)”

  1. Dalmas Ngetich - FOREX.TODAY says:

    Wonderful post. What do you think of Gold mate? since they are correlated directly I really think the USD will be strengthening in the coming weeks. at the moment with the double tops and a sweet evening star formed, I will be looking to initiate shorts in eurUSd, gold and go long usdchf..what do you think?

    1. Hey Dalmas, thanks for your comment. Gold analysis are pretty simple. Current range of $1280 – $1265. Breakage upward will add buying until $1300 and below breakage will add further selling until $1260 – $1250.
      Feel free to discuss about this anytime.
      Regards
      Arslan Ali B.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.