EURUSD with a positive sentiment ahead of the FOMC and ECB
|The last crucial week for the markets this year has just started! What is the most important event that we should focus on? At the very beginning, all eyes were on Bitcoin and the launch of the BTC futures on the CBOE. That is the past now with the cryptocurrency trading much higher. Now we will slowly shift our attention to the central banks. Four major central banks are deciding about the interest rate this week: FED, ECB, SNB and BoE.
Today we will focus on the ECB and FED as we will analyse the EURUSD. Interest rise in US is more than certain and from the ECB we do not expect any major fireworks. Both economies are strong and all the numbers are firm. That creates a situation, where both currencies are heading higher so the global positive sentiment for the USD is actually not very visible here.
EURUSD starts the new week on the front foot. That can be the result of a nice bullish reversal done on Friday. Bounce did not happen in a random place. The price bounced of the horizontal support on the 1.173 (orange), which is respected since the mid of October. As long as the price stays above the 1.173, the sentiment is positive and we should continue the movement which started at the beginning of the year.
The closest resistance and in the same time the target is 1.1806 (grey area). That area was respected recently with a great accuracy and the chances that we will get there soon are very high. That creates a great chance for the short-term traders. They should be able to catch this movement before the central banks will steal the spotlight later this week.
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