The dollar trades mixed across the board, as the US Federal Reserve meeting starts. The common currency is being the most benefited by some profit taking and position adjustments, with the EUR/USD rallying up to 1.1059 ahead of the European opening. Currently pulling back from the level as local share markets opened with a positive tone, the pair continues trading above the 1.1000 figure, maintaining the bullish tone seen on previous updates.
Germany will release its ZEW confidence survey in an hour, while the US will unveil its latest inflation data at the beginning of the US session, this last, quite relevant considering the US Central Bank will have to decide these days whether or not, to raise rates. US CPI is expected to have remained flat in November, and to have grew 0.5% compared to a year before. A better-than-expected outcome can lead to a dollar rally this Tuesday.
View the Live chart of the EUR/USD
Technically, the 4 hour chart shows that the technical indicators are retreating within positive territory, while the price develops above a flat 20 SMA, at 1.0980, and the 50% retracement of the October/December decline, at 1.1000. Below this region, the pair can fell down to 1.0940 in the short term, and extend its decline down to 1.0900 on a strong dollar.
Renewed buying interest above 1.1050 on the other hand, should see the pair extending its rally towards 1.1080/1.1090, en route to 1.1120, the main bullish target now.
Latest updates on the EUR/USD Forecast-------
What will 2016 bring to the Forex traders? Attend our event, Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too.
-------
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.