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-------
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