Monday, 22 January 2018

EUR/USD – the week starts with the consolidation

Posted by Anonymous at 16:37 Labels: ,

In the absence of important economic news, all the attention of market participants is focused on political events taking place in Germany and the United States. EUR / USD is traded predominantly within sideway focus. So far, these trends will continue to be present in the current week. The price is rather weakly reacting to everything that is happening, although amid recent successes in achieving domestic political stability in Germany and vice versa the aggravation of the domestic political struggle in the United States, a single European currency should receive a strategic advantage.
After the statements of the PSD head-Martin Schulz that re-elections are not the best scenario for the party, many market participants are almost sure that eventually the parties will find a compromise and a "big coalition" of PSD with the CDU / CSU will be formed in Germany.
At the same time, concerns of the opposition between the Republican to the Democrats in the US and the absence of any news and comments from the Fed continue to exert pressure on the American currency. The internal political struggle has already led to the suspension of the work of the government and even if today the Senate will be able to extend government funding until February 8, the problem will not be solved, but only delayed for a short time. In such  situation, it is difficult to count on strengthening the US currency given the absence of important economic news this week.
The sellers of the EUR / USD pair can only hope for Mario Draghi, who can cool the bulls pressure a little, at a press conference scheduled for Thursday, as some ECB representatives started sending signals to the market last week that the regulator will not long endure the continued euro gains.
 On the four-hour chart today, we see the price consolidation within the boundaries of the horizontal channel formed last week 1.2185 - 1.2300. At the same time, we do not yet have any signals of price exit from the current outset. Technical indicators are at their mid-range values ​​hinting at the possible continuation of consolidation.

No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )