Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On the final September Monday, the major currency pair is sticking to its two-month lows and trading around 1.1634.
The start of this week is anticipated to be calm for EUR/USD but there will be a lot of news later.
As usual, at the beginning of every month, the USA is going to report on its labor market and September readings may raise a lot of questions. The first of them is whether the positive impulse, which helped to eliminate the spring crisis with jobs and labor force, is still strong or on the decline and may start consolidating? If the employment indicators do not steadily improve, there will be talks about additional stimulus packages, which is a serious problem.
This week, the USA will publish the final report on the country’s GDP for the second quarter of 2020. If the actual readings are not worse than expected, the USD may find some support because all problems in this area have already been included in prices.
In the H4 chart, EUR/USD is forming the third descending wave with the target at 1.1600. Later, the market may correct towards 1.1744 and then continue trading inside the downtrend with the target at 1.1500. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is no longer moving inside the histogram area. However, taking into account that on the price chart the instrument may yet continue falling, the line is not expected to rise towards 0 until the price reaches the target. If later the line breaks 0, there might be a new correction on the price chart.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
As we can see in the H1 chart, after breaking 1.1640, EUR/USD is consolidating below it. Possibly, the pair may test this level from below and then resume falling to break 1.1612. After that, the instrument may continue trading downwards to reach 1.1600 at least. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving downwards and has already broken 50. Later, it may continue falling to reach 20. Only after the line leaves the area of 20, the asset may start a correction on the price chart.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
- COT Bonds Charts: Speculator Weekly Changes led by 5-Year & 10-Year Bonds Apr 28, 2024
- COT Stock Market Charts: Speculator Bets led by VIX & Russell-Mini Apr 28, 2024
- COT Soft Commodities Charts: Speculator Bets led by Corn & Soybean Meal Apr 28, 2024
- Today, investors’ focus is on the PCE Price Index inflation report Apr 26, 2024
- Gold price recovers amid uncertain US economic outlook Apr 26, 2024
- This “Bullish Buzz” Reaches Highest Level in 53 Years Apr 26, 2024
- FastSpring and EBANX Forge Partnership to Expand Pix Payments for Digital Products in Brazil Apr 25, 2024
- Target Thursdays: NAS100, Robusta Coffee, USDCHF Apr 25, 2024
- QCOM wants to create competition in the AI chip market. Hong Kong index hits five-month high Apr 25, 2024
- Japanese yen hits all-time low as BoJ meeting commences Apr 25, 2024