Community Forecasts for September 14-18: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The single European currency was developing in a rather bullish environment during the previous trading week, but was changed by a negative tendency on Friday. The pair soared on Tuesday extending gains from the previous two sessions, after China released weak manufacturing data for August thus strengthening concerns of a recession in the world's second largest economy. China's official PMI diminished to a three-year low, reaching 49.7 points compared to a reading of 50 in July. Nevertheless, the next day, the Greenback pushed higher against the other major currencies, despite the release of disappointing economic reports from the US. Non-farm private employment rose by 190,000 last month, while US factory orders added 0.4% in July, missing forecasts for a gain of 0.9%. However, the pair  tumbled around 1% on Thursday, as the European Central Bank sent strong signals it could extend its bond-buying programme beyond 2016 in order to stave off potential deflation. As a result, the pair turned broadly lower on Friday, taking into account the uncertainty over the Federal Reserve rate hike. 
The participants of our weekly Community Forecasts quiz decided to become more bearish on the Euro, as 53% of all votes are negative. For example, Jignesh claims that the Euro received a bearish push lower after the Mario Draghi's speech. Expecting rallies to be sold throughout the week. khalidamassi also predicts bearish movement- "The EUR/USD failed last week to hold above 1.1200, now, 1.1200 will play resistance rule, as the pair holds below it and may reach 1.0850-1.0900."
This week's key events from the US include initial jobless claims announcement and data on producer prices as well as consumer sentiment. 

© Dukascopy Bank SA
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