Forex Market: EUR/USD daily trading forecast

Yesterday’s trade saw EUR/USD within the range of 1.2683-1.2582. The pair closed at 1.2670, adding 0.13% on a daily basis.

At 9:28 GMT today EUR/USD was down 0.01% for the day to trade at 1.2668. The pair touched held in a daily range of 1.2623 – 1.2684.

Fundamental view

Investors keenly awaited minutes of the Federal Reserves most recent policy meeting, due to be released at 18:00 GMT, for clues of when the central bank will likely initiate its interest rate hike.

Junichi Ishikawa, an analyst at IG Markets in Tokyo, commented for Bloomberg: “If the Fed minutes today show discussions about specific timing of their interest-rate increase, that would boost the likelihood that the next policy statement will alter the wording around keeping borrowing costs low for an extended period. That will spur dollar buying.”

Eurozone

Spain’s statistics agency (Instituto Nacional de Estadistica) reported at 7:00 GMT that the country’s industrial production expanded at an annualized 0.6% in August, following an upward-revised 0.9% growth in the previous month. Analysts had expected Spain’s industrial output to have grown by 1.4%.

Yesterday, Destatis reported that Germany’s industrial production contracted by 4% in August, the most since 2009, in the latest sign of deteriorating economic conditions in the leading EU economy, and the Eurozone as a whole. This comes after a downward-revised 1.6% expansion in July, while analysts had projected a moderate 1.5% decline in industrial output.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2645. In case EUR/USD manages to breach the first resistance level at 1.2708, it will probably continue up to test 1.2746. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2809.

If EUR/USD manages to breach the first key support at 1.2607, it will probably continue to slide and test 1.2544. With this second key support broken, the movement to the downside will probably continue to 1.2506.

The mid-Pivot levels for today are as follows: M1 – 1.2525, M2 – 1.2576, M3 – 1.2626, M4 – 1.2677, M5 – 1.2727, M6 – 1.2778.