The past week was indeed eventful in the forex market as major events unfolded leading to some real volatility across the board. Let's take a look at our EURUSD Weekly Technical Analysis ahead new trading week
18 March, AtoZForex – An outspread policy of easing has submarined the EURUSD from 1.60 to 1.06 and even if there is no room for a full retracement, some stability or a hawkish turn from the ECB could easily mean 1.15 or 1.20 in sight.
This past week, ECB member Nowotny said a rate hike could be needed as soon as possible. It was noticed from this month's monetary policy announcement that Eurozone policymakers have grown less dovish but few expected the central bank to be considering tightening especially in light of the region's political uncertainties. According to the latest polls on Friday, despite the far right's failure in the Netherlands, Le Pen is closing the gap with Macron.
Fundamentally, the Eurozone economy is witnessing all round improvement. This is expected to be confirmed by next week's PMI reports. we are still looking for EURUSD to test at least 1.08xx as long as political headlines don't choke the rally.
That's that for the fundamentals within the week, let's see what the technical postures are, going into the new week.
EURUSD Weekly Technical Analysis ahead new trading week
Daily Technical Outlook
EURUSD D (Click to zoom)
Looking at the daily frame of the EURUSD, a wedge could be spotted. We have been tracking and constantly updating our readers about price development around this region. Particularly, our last weekend piece EURUSD Technical Analysis ahead of the new trading week outlined our point of actions. Going into the new trading week, the targets of the falling wedge (bullish) remains 1.0850. We remain bullish on the EURO going into the new trading week.
EURUSD Hourly Technical Analysis
EURUSD 4H (Click to zoom)
The hourly posture of the EURUSD still looks constructive. Going into the new trading week, 1.0680 will be our action zone. We want to see price reaction around this region to initiate fresh longs. The targets remain the top of the basket formation (1.0850s). However, if our bullish scenario must remain intact, 1.0600 should not be breached. Goodluck and be rest assured that you shall be kept abreast of the happenings around our actionable zones as events unfold.
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