EURUSD Fundamental Drivers Forecast


As traders wait for important economic data, How is the EURUSD pair trading? Learn this from the 21 February EURUSD Fundamental Drivers Forecast.

21 February, OctaFX – The EUR/USD pair is little changed as traders wait for important economic data from the European Union and the United States. In the early hours, we will get the manufacturing and services PMI data from Germany. Traders expect the manufacturing activity in Germany to slow to 60.6, down from 61.1 reported in the previous month.

They also expect the services activity to slow to 57 from last month’s 57.3. In the afternoon, the same data will be released in the U.S where traders expect manufacturing PMI to slow to 55.4 compared to last month’s 55.5. They expect the services PMI to move up from 53.3 to 54.0. The biggest news of the day will be the FOMC minutes which will give us a better direction of the Fed.

21 February EURUSD Fundamental Drivers Forecast

The strong dollar, caused partly by higher U.S Treasury yields pushed the EUR/USD pair lower. Indicators imply that the pair could continue the downward trend. As shown below the arrangement of the long and short-term moving averages indicate that the pair could continue moving down.

The pair is now at an important Fibonacci Retracement level of 61.8% and there is a likelihood that it might drop to the 70.70% level at 1.2307.

Disclaimer

This article about 21 February EURUSD Fundamental Drivers Forecast was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.

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