The EUR/USD pair heads into the weekly close trading at its highest for the week, a handful of pips below the 1.2200 figure. The long-term trend is bullish and investors eyes 1.2413, April 2018 monthly high, FXStreet’s Chief Analyst Valeria Bednarik reports.
“The US Federal Reserve is having a monetary policy meeting next Wednesday. The central bank is expected to maintain its monetary policy unchanged. The US will publish December Durable Goods Orders earlier that day, seen posting a modest 0.9% advance. On Thursday, the country will release the preliminary estimate of the Q4 Gross Domestic Product, foreseen at 2.8% QoQ from 3.7% in the previous quarter.”
“On Monday, Germany will publish the January IFO survey, while on Thursday, the EU will release its January Economic Sentiment Indicator. By the end of the week, Germany will unveil the preliminary estimate of its Q4 GDP, previously at 8.5% QoQ.”
“Bulls will have better chances should the pair extend its advance beyond 1.2222, January 13 daily high and the immediate resistance level. Above it, 1.2300 and 1.2350 are the next levels to watch. A bullish breakout beyond the latter opens the door for an extension towards 1.2413, April 2018 monthly high.”
“Below the Fibonacci support level at 1.2060, the EUR/USD pair has room to test the 1.2000 figure and even temporarily extend its slide below it. Nevertheless, euro/dollar would need quite a catalyst to break this level, unclear at the time being.”
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