The EURUSD consolidated last week below the 1.2886 levels as expected , with this level intact on a weekly basis , further downside couldn’t be ruled out , this is the last week of Oct , let’s highlight the most critical events which may influence EURUSD pair next week :
Monday , Oct 27 2014
- Form EURO zone ,Germany will release data on German Ifo Business Climate Index (Oct) .
- US will release its report on Pending Home Sales (MoM).
Tuesday , Oct 28 2014
- US will release its data on Core Durable Goods Orders (MoM) (Sep) , later on the day , US will release another data on CB Consumer Confidence (Oct).
Wednesday , Oct 29 2014
- From U.S , we have Fed Interest Rate Decision .
Thursday , Oct 30 2014
- From EURO zone , we have German Unemployment Change (Oct) ,latter on the day Germany will release its data on German CPI (MoM) (Oct).
- US will release its weekly report on Initial Jobless Claims , at the same time we have the high importance US GDP (Q/Q) (Q3).
Friday , Oct 31 2014
- From EURO zone , we have the high importance CPI (Y/Y) (Oct) and Unemployment Rate (Sep) .
Events will be discussed during the week …..
Technical Outlook :
The EURUSD printed resistance at the 1.2840 levels last week , As a result ; Outlook in EURUSD has turned to the downside as long as resistance 1.2840/1.2886 holds on a weekly closing basis , support comes at the 1.2613 levels , a cut will open 1.2500 next , further downside will pave the way towards the 1.2389 levels ahead of the 1.2300 levels .
On the upside , resistance comes at the 1.28840/1.2886 levels , break of the 1.2886 levels on a weekly closing basis , will put the pair in recovery mode , but recovery mode above 1.2886 levels should be contained well by the 1.3335/1.3444 levels .
In all , as long as resistance 1.2840/1.2886 holds on a weekly closing basis , outlook in EURUSD remains on the downside towards the 1.2613 levels ahead of the 1.2500 levels ,a clear break above the 1.2886 levels will bring limited gains below the the 1.3335/1.3444 levels before the next fall.
Support and resistance : 1.2042 , 1.2132 , 1.2389 , 1.2500 , 1.2613 , 1.2666 , 1.2750 , 1.2840 , 1.2886 , 1.2994
Conclusion : As long as 1.2840/1.2886 holds on a weekly closing basis , weekly chart remains to the downside strongly , so any positive data for EURUSD should be taken as an opportunity to short the pair at resistance levels …Negative data is supposed to accelerate the expected bearish move .