EURUSD has moved back below the psychological 1.2000 level, and traders are awaiting the release of German inflation data for the month of August. What’s next for EURUSD? OctaFX shared its 30 August EURUSD analysis for more insights.
30 August, OctaFX – The economic data returns to the limelight on Wednesday, with reports on German inflation and US employment making headlines. Action begins in Europe at 08:00 GMT with a ZEW survey on Switzerland’s business climate. A half hour later, attention shifts to the United Kingdom with reports on consumer credit, net lending to individuals and mortgage approvals.
In North America, the ADP Research Institute will release its monthly private sector payrolls report at 12:15 GMT. The report, which is released 48 hours in advance of the official nonfarm payrolls data, is expected to show the creation of 185,000 private-sector jobs for the month of August. That follows a gain of 178,000 the previous month.
Later, the US Commerce Department will release revised second quarter GDP numbers. The revised estimate is forecast to show annual growth of 2.7%, up slightly from the advance estimate of 2.6%. Oil traders will also look for the weekly inventory report from the US Energy Information Administration (EIA). The weekly data set is forecast to show a 2.1 million-barrel drawdown in commercial crude inventories for the period ended 25 August.
30 August EURUSD analysis
The European Commission’s statistical agency will release a batch of sentiment indicators at 09:00 GMT. These include services sentiment, consumer confidence, industrial confidence, business climate and economic sentiment. The biggest news release from the continent comes at 12:00 GMT when Germany’s Federal Statistical Office reports on inflation.
The EURUSD pair has moved back below the psychological 1.2000 level, dropping over 100-pips from the new 2017 price high set on Tuesday, with price finding intraday support from the 1.1946 level. At present, the euro is trading around the 1.1980 level, with the 50-hour moving average currently supporting price-action, as traders await the release of German inflation data for the month of August.
On an intraday basis, the EURUSD remains vulnerable to further losses while trading below the daily pivot point, at 1.1997. The euro remains strongly bullish in the medium and long-term while trading above the 1.1660 level. Key intraday technical resistance for the EURUSD is found at 1.1997, 1.2030 and yesterday’s price high, at 1.2070. To the downside, EURUSD support is found at 1.1959, today’s current swing price low, at 1.1946. The euro’s 100-day moving average is found at 1.1903, just below the current weekly price low, at 1.1916.
The US dollar rebounded against the yen on Tuesday, but continues to move with a bearish bias. The pair was up 0.2% at 109.77 ahead of the European session after coming within a few pips of 110.00. A reversal back toward 108.60 raises the risk of a bigger downtrend. In the opposite direction, another close above the 20-day simple moving average (109.60) may draw more bidders into the mix.
WTI Oil analysis
US crude prices have declined in back-to-back sessions, as traders assess the fallout from Hurricane Harvey. Prices were down 0.3% during the Asian session to reach $46.31 a barrel. The short-term outlook remains bearish, with the Relative Strength Index (RSI) in the low-40s and the MACD in negative territory.
This article about 30 August EURUSD analysis, should not be taken as advice nor 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, acts of nature 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.