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EURUSD: bulls aiming for the 67th degree

On Friday the 27th of September, the euro made significant gains against the US dollar as traders partially cashed in on their positions ahead of the weekend. The British pound took a dive against the dollar and euro following hints from one of the Bank of England’s MPC members Michael Saunders that the regulator would ease its monetary policy if Brexit uncertainty continues.

Day’s news (GMT 3):

  • 10:55 Germany: unemployment rate (Sep), unemployment change (Sep).
  • 11:30 UK: current account (Q2), GDP (Q2), net lending to individuals (Aug), M4 Money supply (Aug).
  • 12:00 Eurozone: unemployment rate (Aug).
  • 15:00 Germany: harmonised index of consumer prices (Sep).
  • 15:30 Canada: industrial product price (Aug).
  • 16:45 US: Chicago PMI (Sep).

Current situation:

Friday’s expectations were met. The pair bounced from 1.0907, recovering initially to the LB balance line, and then pushing further to the 45th degree (1.0957). From a high of 1.0959, the pair corrected to the balance line. The pair is currently trading at 1.0944 in today’s European session. Today, the rate should continue upwards to within a range of 1.0975 (the upper line of the channel) to 1.0983 (67th degree). First, though, we need to break through 1.0953 (upper line of the downwards channel.

We may see the rate fluctuate from around 11:30 to 15:00 (GMT 3) in the aftermath of German and British data publications. The sharper the breakout of 1.0953, the higher the probability of reaching 1.0980 and 1.1011.

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