After hitting its highest levels of the month on Wednesday just under 1.1370 on Wednesday, EUR/USD has pulled back to within recent ranges.
Earlier in the session, the pair tested its 21-day moving average at the 1.1300 level, but has since rebounded to around the 1.1330, where it trades lower by about 0.1% on the session. The pair’s failure to break above December’s 1.1240-1.1360ish ranges is not overly surprising given that markets have been very much on holiday mode this week. Indeed, for many European nations, Thursday is the final trading session of the year, whilst for most European nations that do see markets open on Friday, it is a half-day.
What do you think about it?
I think if USD interest rates are raised owing to inflation fears, then you could expect a bearish response.
2 Likes
Explain what could happen in January. I think the EUR could be stronger.
IMO, it all depends on how the FEDs see how the USD economy would be affected going into a huge Covid infection period. Currently, they have played down inflation issues, and not increased interest rates.
The EUR countries also have high infection rates, however interest rates otherwise ‘stable’ by comparison. Only the UK has increased rates so far, and that had a major effect on the pound rising against major currencies.
While in a downward long term trend, I suggest that (for whatever fundamental issues that could arise) if the price 1.13850 reaches up to the 1.14350 price zone, that’s a possible beginning of a substantial bullish movement.
1 Like
Accepted some information, as I do not trade with fundamentals so I have less experience on this subject. But there is some idea.