Good day forex traders.
I wanted to provide a mid week update seeing the confusion of a number of readers on the pricing action of the EUR/USD.
We see an easing of the US dollar bringing the currency pair to the top of the resistance region of 1.18.
If the resistance fails, bullish momentum may seek out 1.2 as the next target. We are near the end of the week and hence it would probably take a further escalation of momentum to pull that off.
Reports suggest that a more dovish than expected US Federal Reserve meeting minutes is driving the green buck down.
Bloomberg reports ” The euro-area economy gathered pace in November to stay on track for its best annual performance since the financial crisis, data showed Thursday. Supported by ultra-low interest rates and asset purchases from the European Central Bank, the bloc has seen unemployment drop from a record and is enjoying its most synchronized expansion since before the single currency was founded. Still, minutes from the central bank’s last policy meeting showed ECB policy makers argued against putting an end date to its bond-buying program.
Meanwhile, German politics remains in the spotlight, with Social Democrat leader Martin Schulz ready to start talks with Merkel and prepared to offer her limited support for a fourth term, according to two people familiar with his plan. In the U.S., while the Fed’s meeting minutes showed many policy makers still saw a “near term” rate hike as warranted, several were concerned about soft inflation. ”
Proper money management remains vital as there is never a possibility of having a 100% success rate. Trade safely.
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