Community Forecasts for October 6-10: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
In course of the previous trading week, the EUR/USD currency pair continued to depreciate moderately, prolonging its long-term negative trend. Among important fundamentals, Eurozone's inflation remained at record-low level of 0.3% in September, which pushed the single currency almost 100 pips down to 1.2571. During the middle of September 29—October 3 week, the currency cross hovered sideways, while Friday's data on employment and trade from the United States pushed all U.S. Dollar pairs to the upside. The most popular currency pair was not an exception, as it lost some additional 120 pips to finish the working week at 1.251, the lowest level since August 2012. Dukascopy traders, in turn, forecasted such a bearish move to take place last week, as vast majority of votes, namely 88% of them, were set in favor of decline of the European currency.
This week the sentiment improved considerably, as almost 54% of all traders, who participated in our weekly Community Forecasts quiz, expect the Euro to rebound, meaning that the single currency possibly reached the point of being too oversold. The data both from the Eurozone and U.S. includes a number of speeches from FOMC members due to upcoming minutes from committee's meeting of the September 16-17, speech of the ECB President Mario Draghi and meeting of G20 finance ministers and central bankers in Australia. Moreover, the data on German industrial production for August was already released worse than predicted on Monday, dropping 5.7%, which had no significant impact on pair's performance. Based on all, the average estimate for EUR/USD currency pair rose to around 1.27 major level for Friday of this week, while the confident majority of all votes is located above the 1.25 level.
© Dukascopy Bank SA

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