In yesterday’s trading, the US dollar continued its strengthening against the single European currency, which was supported by a decrease in the appetite for risky operations among investors, as well as positive statistics from the United States of America. Thus, initial applications for unemployment benefits increased by 684 thousand, although this figure should have been 730 thousand. Also better than expected were the final data on US GDP for the fourth quarter, which showed the growth of the world’s leading economy by 4.3%. The already strong US dollar has not missed the opportunity to take advantage of such positive statistics to continue to dominate a wide range of currencies. In today’s economic calendar, the EUR/USD currency pair has quite a rich program. In the first half of the day, namely at 10:00 London time, the IFO indices of current conditions, expectations, and business climate will be published. And at 13:30 (London time), we will learn about the state of personal income and expenses of Americans. At the same time, the basic price index of personal consumption expenditures will be released, and the consumer sentiment index from the University of Michigan will finish the American statistics at 15:00 (London time).
During yesterday’s decline, the main currency pair of the Forex market fell to the level of 1.1761 and ended trading on Thursday at 1.1768. Needless to say, the bears confidently control the course of trading on the euro/dollar, breaking through one after another important and significant levels. So the rather strong mark of 1.1800 could not resist and was passed down yesterday. However, as I have repeatedly noted in previous articles, closing only one candle under or above the level/line does not mean a true breakdown. At the end of this article, the pair is slightly strengthening, trying to return above the important mark of 1.1800. To tell the truth, so far the euro bulls have not been very successful in this task. At the moment, the EUR/USD pair visited 1.1788, where it met resistance and bounced down. Nevertheless, it is necessary to understand that the main macroeconomic events that can affect the course of trading in EUR/USD are still ahead. Also, on the last day of weekly trading, against the background of fixing positions, the pair may conduct a corrective pullback. I do not think that it will be significant, but still, this scenario should not be discounted.
For those who want to open fresh positions today, I recommend looking at sales from the price zone of 1.1795-1.1805, that is, on the attempts of the pair to return above the level of 1.1800 that is significant for market participants. Sales at higher prices can be searched for in the case of a rise in the euro/dollar in the price area of 1.1825-1.1835. In any case, in my personal opinion, today is not the best day to open new positions. I do not recommend buying yet, because they are against the main downward trend, and the current growth may change at any time to a movement in the south direction. On Monday, taking into account the closing of the current weekly trading, I hope that the technical picture for EUR/USD will be more complete and we will be able to more specifically consider options for entering the market.
The material has been provided by InstaForex Company – www.instaforex.com
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