Key Highlights
- The Euro moved down sharply this past week and traded below 1.1700 against the US Dollar.
- There was a break below a crucial triangle support at 1.1735 on the 4-hours chart of EUR/USD.
- The US Gross Domestic Product (Q3 2017) (Annualized) (Prelim) posted a growth of 3%, more than the forecast of 2.5%.
- Today, the Euro Zone Economic Confidence for Oct 2017 will be released, which is forecasted to increase from 113.0 to 113.4.
EURUSD Technical Analysis
The Euro started a new downside wave from 1.1835 against the US Dollar. The EUR/USD pair is now below 1.1700 and eyeing further declines in the near term.
Looking at the 4-hours chart, there was a break below a crucial triangle support at 1.1735. The pair is now placed well below 1.1700, the 100 simple moving average (4-hour, red) and the 200 simple moving average (4-hour, green).
These are bearish signs and might put a lot of pressure on EUR/USD for a move towards 1.1500. Any major corrections in the short term towards 1.1640 and 1.1700 might be considered as selling opportunities for bears.
US Gross Domestic Product
This past Friday, the Gross Domestic Product Annualized figure for Q3 2017 (prelim) was released by the US Bureau of Economic Analysis. The forecast was slated for a rise of 2.5% compared with the last increase of 3.1%.
The actual result was better than the forecast, as there was a rise in the GDP by 3%. Looking at the GDP Price Index, there was an increase of 2.1%, which was more than the forecast of +1.8%.
The report stated:
Current-dollar GDP increased 5.2 percent, or $245.5 billion, in the third quarter to a level of $19,495.5 billion. In the second quarter, current-dollar GDP increased 4.1 percent, or $192.3 billion.
Overall, the EUR/USD pair remains in a downtrend and might extend its declines towards 1.1500 in the near term.
Economic Releases to Watch Today
Euro Zone Consumer Confidence Oct 2017 – Forecast -1, versus -1 previous.
Euro Zone Services Sentiment Oct 2017 – Forecast 15.0, versus 15.3 previous.
Euro Zone Industrial Confidence Oct 2017 – Forecast 7.0, versus 6.6 previous.
Euro Zone Economic Sentiment Indicator Oct 2017 – Forecast 113.4, versus 113.0 previous.
US Personal Income for Sep 2017 (MoM) – Forecast +0.4%, versus +0.2% previous.
US Core Personal Consumption Expenditure for Sep 2017 (MoM) – Forecast +0.2%, versus +0.1% previous.
