27.10.202108:33 Forex Analysis & Reviews: EUR/USD breaking forecast on October 27, 2021

Yesterday, the euro was incurring losses although it was falling at a slow pace. US macroeconomic data was behind a weaker euro. Firstly, the house price index dropped to 18.5% versus 19.2%, missing market expectations of a 19.5% rise. Amid growing global prices that jeopardize the world economy, even a small decline in figures is seen as an extremely positive factor. Even if it is just about the house price index that has little impact on inflation. Lastly, new home sales soared by 14.0%, beating market forecasts of a 1.0% increase. Such a sharp rise in the reading became the main reason for the strengthening of the greenback. Why did the euro plunge then? It tumbled because of the ECB's upcoming monetary policy meeting. Given the uncertainty surrounding its outcome, investors are not ready to risk and prefer to stay cautious.

United States New Home Sales:

Exchange Rates 27.10.2021 analysis

Today, however, the US dollar is likely to lose some of its earlier gains due to a 0.8% fall in durable goods orders. This indicator determines future consumer spending, which, in turn, is the main driver of the American economy. Therefore, amid the possibility of a decrease in consumer spending, the greenback is expected to go down.

United States Durable Goods Orders:

Exchange Rates 27.10.2021 analysis

The EUR/USD pair rebounded from the lower boundary of the previously broken-out sideways channel of 1.1620/1.1669, signaling the likelihood of a reversal where market participants are likely to restore a corrective move.

The Relative Strength Index (RSI) is located at lower levels, indicating a downward trend.

On the daily chart, there is a bearish trend that started in early June, where a correction could not change the current price movement.


The pair is expected to move sideways in the 1.1590/1.1625 range. In case of consolidation below 1.1580, a signal will appear indicating an increase in the volume of short positions.

In terms of complex indicator analysis, there is a sell signal for short-term and intraday trading because the price is moving below the previously broken-out sideways channel.

Exchange Rates 27.10.2021 analysis

*Phân tích thị trường được đăng tải ở đây có nghĩa là để gia tăng nhận thức của bạn, nhưng không đưa ra các chỉ dẫn để thực hiện một giao dịch.

Dean Leo,
Chuyên gia phân tích của InstaForex
© 2007-2021
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Breaking forecast for GBP/USD, December 1st
Yesterday, the market was quite volatile following Jerome Powell's speech. The US dollar maintains its upward movement. Analysts are sure that it may develop a long-term rally.
Author: Dean Leo
01:51 2021-12-01 UTC--5
Hot forecast for EUR/USD on 11/30/2021
The question is not even what the preliminary estimate of inflation in the euro area will show today, but whether market participants believe in the possibility of changing the monetary policy of the European Central Bank...
Author: Dean Leo
02:13 2021-11-30 UTC--5
Breaking forecast for GBP/USD, November 29
On Friday, the pound sterling managed to rise following Lagarde's speech. However, it is unlikely to extend gains due to mixed lending market data
Author: Dean Leo
01:42 2021-11-29 UTC--5
Show more
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.