The Euro-to-Dollar Rate's Week-Ahead Technical Forecast: Looking Bullish, Inflation Data Due Mid-Week

The EUR/USD exchange rate has been rising up within a channel and looks poised to breakout even higher over the next five days.

The Euro-US Dollar is recovering after a move lower in the first half of October, but can the recovery survive and prosper back above 1.2000 or might political uncertainty push the Euro back down again?

There is a chance the Euro-to-US Dollar pair may be about to turn and move higher, says Forex.com’s Fawad Razaqzada.

Political machinations in Europe and labour data in the US are likely to be the primary drivers of the Euro to US Dollar pair in the coming week.

We are told Sunday’s independence referendum in Catalonia could cause a constitutional crisis in Spain and would put Eurozone breakup risk back on the agenda of investors posing negative implications for the Euro long-term.

The Euro-to-US Dollar rate could be pressured lower due to inefficiencies in the foreign exchange forward contract market, says Commerzbank analyst Ulrich Leuchtmann. 

Germany's election outcome could mean Eurozone integration takes a back seat and leaves the Euro-to-Dollar rate at the mercy of central bankers and politics in Washington once again.

The Euro-to-US Dollar pair is stubbornly clinging onto the 1.2000 ledge despite attempts by Dollar bulls to unseat it; and the pair enters the new trading week in the midst of a still-intact if mature uptrend.