- EUR/USD bullish rally has faded and a topping pattern is in play.
- There is a bearish bias while EUR/USD remains below 1.0950.
As per the pre-open analysis at the start of this week, when there were reports by Reuters that the European Central Bank (ECB) officials were suggesting that the ECB is set to raise interest rates by 50 basis points in both February and March and will continue to raise rates in the months after, the euro has stuck tot he forecasted schematic as follows:
EUR/USD prior analysis
(Bearish schematic could be playing out)
It was stated that the Euro was in the barroom brawl, chopping around support and resistance. The analysis argued that if the bulls commit, then the 1.0870/90s and potentially the 1.09 psychological level could be attractive to the bears who are in anticipation of a premium for the opening sessions of the week.
The bullish rally has faded. There is still plenty to go, however, until critical US calendar events and the US dollar remains capped at resistance. Therefore, there are no dramatic moves expected over the course of the day ahead Nevertheless, a topping pattern is in play in EUR/USD and that leaves the bias to the downside while below 1.0950.
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.