European currency displayed strong previous week close

The main pair of the FOREX market completed the past week very strongly. Despite the low trading activity and low volatility, EUR / USD finished the week with gain. Discussions on the issue of tax reform in the US continues and amid the absence of other news, this fact was in the center of the market's attention. The situation has not yet been resolved, so the pressure on the dollar will continue, and euro bulls will use this driver no doubt. Moreover, there is a number of important news that can support the common European currency this week.

Tomorrow Frankfurt conference under the auspices of the ECB will start and many representatives of central banks will attend, including D.Yellen, M.Draghi, M.Carney, etc. The conference will be accompanied by speeches by representatives of banks, so the impact on the market of this event can be quite significant. In addition, tomorrow we expect data on the producer price index in the US, and to the inflation indicators the market is particularly sensitive these days.

However, today is rather poor for news events therefore there is a high probability that the market will be passive enough in anticipation of tomorrow's news. At four-hour chart there are signals in favor of continuing consolidation in the range of 1.1572-1.1660 and it is quite possible that today, in the absence of important macroeconomic data, the price will continue to stay in this range. Level 1.1660 is strong enough and from the first approach, it will not be easy to overcome. In addition, these levels is the region of the 100th moving average, which represents a serious resistance to further market growth. At the same time, to go short waiting for the rebound is also a dangerous strategy - the market showed a very strong weekly candle. It will be quite dangerous to short because the probability of breakdown of this level will increase.

Recommendations: out of the market until the situation becomes clear.

Fort Financial Servics