Technical levels and economic data to watch this week in the Forex market

Written by
Updated on Mar 11, 2020
Reading time 3 minutes
  • Danske Bank says EUR/USD can be expected to drop as low as 1.09 level.
  • Dropping below 1.2770 will open the way for the next key support for GBP/USD at 1.2570.
  • USD/JPY likely to remain indecisive as long as it is trading below 109.00 crucial resistance.
  • Multiple economic events expected to move the Forex market this week.
  • Events of Brexit and U.S - China trade talks continue to direct the financial markets.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Having closed the last week at 1.1019, EUR/USD can be
expected to test the strong support at 1.0990 level in the upcoming week. Dropping
below the support will see 1.0910 as the next target for the pair. According to
Danske Bank of Denmark, technical indicators are hinting at a greater
risk of the pair dropping to 1.09
and printing new lows for the year 2019. On
the upside, 1.1070 is posing strong resistance for EUR/USD. Breaking above this
level is required for the bullish dominance to return for the currency pair.

Technical Levels for GBP/USD

Copy link to section

Cable finished the last week after a major drop from
around 1.2970 to 1.2814. According to the Forex analysts, the pair can be
expected to continue consolidation between 1.2770 and 1.2980. 1.2770 marks strong
support for the buyers of GBP/USD to sustain. Breaking below this level will
open the way for the next key support currently located at around 1.2570. On
the upside, 1.2980 level continues to cap the buyers in the upcoming week. A
daily close above this level will establish bullish dominance and can be expected
to push the price further up to 1.3170 level.

The indecisiveness of USD/JPY was evident in the past
week. As per the experts, however, the pair remains capped at 109.00 that marks
a strong resistance for the buyers. Having closed the last week at 108.629, the
pair is expected to give a hard time to the traders as long as it remains below
the crucial resistance. With the rising strength of the U.S dollar as depicted
by the U.S dollar index breaking above 98.00 last week, it will be interesting
to see if the buyers have enough steam to push the price above the 109.00
resistance.

Economic Events To Watch This Week

Copy link to section

The analysts have further added that the upcoming week
is likely to be a busy one for the Forex market. The economic data of
significance that can be expected to move the market this week include German
IFO business climate, United States CB consumer confidence, U.S Chicago PMI, and
monthly figures for core durable goods, core PCE price index, and personal
spending for the United States of America. Figures for U.S crude oil inventories
and quarterly GDP are among the other U.S data that is likely to cast an impact
on the Forex market. On the European front, investors are recommended to keep
an eye on the German prelim CPI and yearly CPI flash estimate.

On a broader level, events of Brexit and U.S
– China trade talks
continue to be the deciding factor in determining the
long-term intent of the Forex market.

Advertisement