EUR/USD Weekly Forecast – 08 February – 12 February

It was a steadier beginning of the last week for euro, but pair was pushed higher after investors started to believe that Fed is not likely to rise interest rates again soon. Pair broke weel above recent consolidation range, and even broke above 1.12 handle. However, after NFP figures, pair pulled back to 1.11 handle- As for next week, with no major data releases both from Eurozone and the USA, we believe that we can expect a bit less volatile sessions. Pair is likely to find support around 1.10 handle, as this was previosuly major resistance, while area around 1.1250 handle should offer some amount of ressitance, as break above this area, would mark that pair could much higher.

German Factory Orders down by 0.7%

Based on provisional data, the Federal Statistical Office (Destatis) reports that price-adjusted new orders in manufacturing in December 2015 decreased a seasonally and working-day adjusted 0.7% on November 2015. Analysts were predicting smaller decrease by 0.3%. In November 2015, they increased by 1.5% on October 2015, thus confirming the provisional result published in the previous month. 

In December 2015, domestic orders decreased 2.5% while foreign orders increased by 0.6% on the previous month. As regards the direction of trade in foreign transactions, new orders from the euro area were down 6.9% on the previous month, while new orders from other countries increased 5.5%. In December 2015 the manufacturers of intermediate goods fell 2.0% and the manufacturers of capital goods show decreases of 0.5% on the previous month. For consumer goods, an increase in new orders of 4.3% was recorded.

Euro is currently being traded few points above 1.1180 level. Pair is likely to find support around 1.11 handle and resistance above 1.1250 level. Later today, in the US session, NFP and Trade Balance figures are scheduled for a release.

EUR/USD Daily Forecast – 05 February

There were no major data releases from Eurozone yesterday, however, Mario Draghi held a speech at the Deutsche Bundesbank's Marjolin Lecture, in Frankfurt. He said that he sees no reason for permanently lower inflation and that specific Eurozone challenges don't justify inaction. He also added that mon pol can not be relaxed about aeries of supply shocks. According to Draghi ECB will not surrender to low inflation, but he said that no doubt that if ECB needed to adopt a more expansionary policy the risk of side effects would not stand in their way. However, he emphasized that there are risks of acting too late outweigh risks of acting too early.

EUR/USD Daily Forecast – 05 February

Euro continued its uptrend in the course of the yesterday's session breaking above 1.12 handle, still being supported by believes that Fed is not likely to rise rates in 2016. Pair found some amount of resistance around 1.1240 handle but it is likely that it will try to break further higher. Pair is likely to find support around 1.1150 handle, which was previously resistive, and resistance near 1.13 area, break above which would mark serious uptrend, so this is where we would place short-term buying and selling bids. Read more...