EUR / USD - trading signals

For two days of the week, EUR / USD remained practically unchanged. The pair continues to trade in a narrow range. Yesterday, the market ignored published statistics. In particular, there were data on the Eurozone GDP, which came out slightly better than expected, 0.6% growth in monthly terms and 2.5% since the beginning of the year. Published inflation data once again disappointed, the consumer price index fell to 1.4%. Now this is the main problem of the ECB, which does not allow them to start raising interest rates, despite the gradual crushing of the program of quantitative easing.

The only thing that keeps the euro from further decline is the uncertainty associated with the name of the new head of the US Federal Reserve and from which the regulator's policy on the rate of interest rate increase will depend on in the future. The market ignores other events including, most likely, today's meeting of the FOMC, since the regulator does not plan to change interest rates during it, and the traditional press conference of the head of the FRS is not planned. Therefore, investors will have to be satisfied with the final protocol of the committee, which is unlikely to undergo significant changes compared to the previous one.

On the four-hour chart, the technical picture has not undergone any significant changes. Priority is still in favor of the scenario with a decline. The only thing that alarms is the persistence, with which bulls continue to hold the price near the level of 1.1660, Nevertheless, in fact the price continues to be below the level of 1.1660. The last test, which just happened, ended unsuccessfully. At the end of the previous week we saw a powerful impulse down, demonstrating the strength of the sellers. We are waiting for the completion of correction and the beginning of a new downward wave.

Thus, our recommendations remain unchanged: priority should be given to sales to this currency pair. Possible entry points should be found near the level of 1.1660. The nearest short-term target is at level 1.1572

Fort Financial Services