EURUSD: consolidation expected

20 January, 2020

On Friday, January 17, the euro was down at the close of trading. The euro followed in the footsteps on the GBP, which fell heavily against the US dollar after weak retail sales figures for December were published in the UK. The data increased the likelihood that the Bank of England would decide to lower the level of basic interest rates in the country at its next meeting. The EURUSD pair fell to 1.1086. By the end of the day, the euro had fallen 0.43%, and by 0.26% across the entire week.

The American session saw continued pressure on the euro, due to the upcoming long weekend in the US.


Today’s events (GMT+3):

  • 14:00 Germany: German Buba Monthly Report.
  • 21:30 Eurozone: ECB's President Lagarde speech.
  • National holiday in USA.

Friday’s expectations for a decrease in the EURUSD pair were fully justified, with the fall In price ended at the 67th degree. On the hourly chart, a three-wave structure has formed from 1.1172. According to the AO indicator, there is no defined end to the downward movement, and bears may attempt to set a new minimum at the 1.1086 mark.

At the time of writing, the euro is worth 1.1099. The price is hovering around the trend line at 1.1172. Given that there is a national holiday in the US, and the Stochastic Operator is in the oversold zone, it is forecast to grow to 1.1106 with a subsequent drop to 1.1089.

Most major currencies are trading in the black, and the economic calendar is scarce. A spike in volatility may be caused by the head of the ECB Christine Lagarde, who is scheduled to speak at 21:30 Moscow time. According to the forecast, we considered a weak rebound, however there could be a sharp “double bottom” - it all depends on the bulls’ activity. Crosses with the euro are all up, with the exception of EURAUD. If Monday’s price stays above 1.1086 until Tuesday, then bulls will have the opportunity to restore the price to 1.1140.


Source  
Sentiment on the euro switching to bearish9 Jun, 2020  

The centre of attention is ECB President Christine Lagarde's speech. She already talked about the bank's monetary policy following their meeting...

Christine Lagarde may put pressure on bulls27 Feb, 2020  

According to the forecast, today I am considering a fall down to the 45th degree - 1.0837. There are several reasons for this. The first is that a bearish...

Euro to remain under pressure24 Jan, 2020  

On January 23, the euro was down at the close of trading. Bulls lost ground during the speeches at the ECB meeting, including one from ECB President...


Euro recovers on news from China18 Nov, 2019  

By the end of last week, almost all major currencies closed in the black. The highest growth against the US dollar was shown by the New Zealand dollar...

EURUSD: correction to 1.1060 expected11 Nov, 2019  

On Friday the 8th of November, trading on the EURUSD pair closed at 1.1018. The drop, which started at the beginning of the European session, was mostly...

Euro could drop in response to ECB minutes22 Aug, 2019  

All eyes are on the Jackson Hole symposium, which starts today and will go on until the 24th of August. The heads of central banks will convene...


Gold market upward trend12 Aug, 2019  

When risks increase for the global economy, more and more investors are choosing to place their funds in gold and other precious metals. Even...

Euro recovering on back on the pound22 Mar, 2019  

The pound is showing decent growth today. We're keeping an eye on Brexit news. Barring any negative headlines from the UK or EU, the euro could...