The dollar starts the week with a strong footing, up against most of its major rivals. Despite China continues releasing soft data, this time in the form of worse-than-expected inflation data for December, market's sentiment is generally positive. Stocks in Europe trade generally higher, and US futures follow, whilst commodities maintain a weak tone.
With only the release of the EU Sentix investor confidence index scheduled for today and the US calendar pretty much empty, majors will likely trade on sentiment.
View the Live chart of the EUR/USD
Technically, the EUR/USD pair 4 hours chart shows that the technical indicators are retreating within positive territory, but still above their mid-lines, while the 20 SMA heads strongly higher around 1.0860, now the immediate support. Should the slide extend below the mentioned level, the next bearish target comes at 1.0800/20.
Selling interest on the other hand, has contained rallies around 1.0925 during the past week, which means a break above it could see the pair extending its rally up to 1.0969, this Monday high.
Latest updates on the EUR/USD Forecast
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