EUR/USD Forex Technical Analysis

ForexNewsNow | Published on August 31, 2011 at 4:27 am

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ForexNewsNow.com (New York) – The EUR/USD reacted on Tuesday, August 30th to the release of the Federal Open Market Committee minutes with the dollar losing ground as concerns about the US economic recovery continue.

The euro continues to be under pressure following weak demand at an auction for Italian government debt indicating that fears have not dissipated regarding the health of Europe’s single currency.

Here is an overview of how EUR/USD is trading and a brief overview of the economic calendar for today, August 31st.

The European single currency opened the day trading at 1.4440 and was trading at around 1.4439 as of the time of this writing.

The euro reached a high of 1.4532 and a low of 1.4383 yesterday, August 30th gaining 40 pips following the release of the Federal Open Market Committee minutes yesterday before touching resistance at around 1.4461.

For now, EUR/USD seems to be testing resistance at around 1.4450 with additional resistance points predicted at 1.4524 and 1.4560 and support at 1.4337, 1.4301 and 1.4265.

Here is what analysts had to say about this heavily traded currency pair in the near-term.

Forexpros analysts predicted that EUR/USD was likely to find support at 1.4329, Friday’s low, and resistance at 1.4549, Monday’s high.

Nikolajs Serikovs of Fxtechtrade forecasted that main support for EUR/USD lies at 1.4377 with main resistance at 1.4581.

Economic Calendar

The most influential event today will no doubt be the ADP Nonfarm Employment change report scheduled to be released at 12:15 P.M. GMT. The current forecast is for a 102K increase in jobs. The previous report last month came out at 114K, significantly lower than the forecast of 145K indicating very weak job growth in the US.

The ADP report is typically a very strong indicator of the Nonfarm Payrolls reading that is to be released on Friday, so many will be carefully watching its release.

In Europe, Germany, Italian and EU employment figures are to be released which will help give an overview of the health of the EU labor market.

In Canada, the monthly GDP figures are to be released with a forecast of a 0.2% increase since last month’s reading. The previous report was significantly weaker with a -0.3% outcome against a 0.0% forecast.

 

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