EURUSD - Potential SHORT - Week Commencing 29th August 2016
Last week, Yellen stated that positive US reports have opened up the idea of a rate hike in September and we will need to see more positive US reports for the rate hike to be confirmed.
This acted as a huge catalyst on Friday allowing the US Dollar to break TL on most pairs. As it stands the Dollar is looking bullish with investors waiting for US reports to solidify expectations of a rate hike. The next big report will be the US non farm payroll, scheduled to be released on 02/09/2016. This report is forecasted to be lower than the previous month but a higher than expected result will definitely provide the right catalyst and help the dollar continue its bull run.
On Friday, price broke the bullish TL on EURUSD after testing (for the 4th time) and failing to break the red resistance zone (1.135 to 1.14). In the coming week we expect price to retest the recently broken TL and continue down to the 1.1038 level as speculation for a September rate hike increases. If price declines further, breaking the daily TL and closing below the Blue support zone (1.0935), we think rice will continue to fall to 1.07.
This acted as a huge catalyst on Friday allowing the US Dollar to break TL on most pairs. As it stands the Dollar is looking bullish with investors waiting for US reports to solidify expectations of a rate hike. The next big report will be the US non farm payroll, scheduled to be released on 02/09/2016. This report is forecasted to be lower than the previous month but a higher than expected result will definitely provide the right catalyst and help the dollar continue its bull run.
On Friday, price broke the bullish TL on EURUSD after testing (for the 4th time) and failing to break the red resistance zone (1.135 to 1.14). In the coming week we expect price to retest the recently broken TL and continue down to the 1.1038 level as speculation for a September rate hike increases. If price declines further, breaking the daily TL and closing below the Blue support zone (1.0935), we think rice will continue to fall to 1.07.