Monday, 5 February 2018
EUR / USD closed the seventh week to the row in the green
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trading signals
EUR / USD closed the seventh week to the row in the green, although Friday's decline left the market participants not in a very optimistic mood right before the weekend. Strong Nonfarm data allowed the dollar to gain against most of the world's currencies, including euro. However, it is still difficult to say whether this downward trend will continue, as there will not be important macroeconomic data in the week ahead that could support the mood of the bears when the uptrend persists its dominance.
The likelihood that the next upward impulse for Euro may end with EUR/USD sale-off remains very high and for sure in this regard, the first days of trading will help to understand the intentions of traders.
The European currency remains quite strong due to strong economic growth, which is observed in the EU. Published last week, economic data once again confirmed the continued positive growth estimates. In this case, the lack of action on the part of the ECB signals to market participants that the regulator does not yet see a threat to inflation from the current exchange rate, keeping investors' desire to buy the euro intact.
Therefore, the current fundamental picture of the currency pair is mixed and it is now difficult to give a weight to a particular currency, which can cause flat trend in the market. In this sense, we do not expect the market to test the maximum local levels, but rather expect consolidation trading and sideway dynamics.
As for the technical side of the situation here it is still very uncertain. On the chart, we see modest bulls attempts to hold the ground around 1.2445 as sellers try to withdraw the price from current highs, although the indicator RSI and JSC support the scenario with the development of corrective movement in the direction of support at 1.2300. However, we will receive confirmation of the development of this scenario only after fixing the price below 1.2405.
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