Saturday, 23 July 2016

EUR/USD: Anticipating Fed to set direction

During the last 52 weeks the EUR/USD pair is seen in a sideways movement, which is in fact a record, having in mind the length of the period. This is of significant importance as any possible break would set the course towards major directional move.
If we take into consideration the long term trendline, the most feasible development should be to the upside. This assumption will be confirmed if the bulls conquer $1.1185 mark. 
In short term outlook nothing points this perspective. On Friday session the pair was trading above the physiological level $1.10. For shortly was seen in correction rally towards the 20-day EMA at $1.11, but lost strength and closed at $1.0973.
The US calendar for the next week offers yet another FOMC meeting. Lately US data is showing positive numbers and slightly upbeat from Fed would surge the US dollar additionally. Anyway key support remains the psychological level st $1.10.



No comments:

Post a Comment