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EURUSD Forecast: The Bulls look for a reason to buy

EURUSD Forecast: The Bulls look for a reason to buy.

Euro Side:

  • Brexit Uncertainty
  • Italy Budget concerns
  • Ultra dovish ECB. ECB statement on Thursday showed that no changes have been made to the perspective of keeping rates unchanged at least through the summer of 2019.
  • Weak macroeconomic figures of the Union: The December preliminary Markit PMI add to the doom and gloom of Union, as French figures showed that the country entered contraction, while German readings posted their lowest in four years. For the whole Union manufacturing activity shrank to its lowest in 34-month, services activity to its lowest in 49-month, while the Composite Index declined from 53.4 in November to 51.4 an over 4-year low. According to the official report, new business inflow almost stalled, job creation slipped to a two-year low and business optimism deteriorated.

 

USD Side:

Wednesday; FED’s rate hike decision and FOMC Statement will be announced. It is widely expected a rate hike from FED that should bring the overnight target range to 2.25%–2.50%. The key outcome of the post-rate decision press conference is the economic and the monetary policy outlook Powell is going to pursue. If the Fed chairman indicates a pause in the rate hiking cycle now, a decline in DXY and Dollar Sell-off may start.

Euro Bulls are looking for a reason to buy but its hardly difficult to find one. ( even half )

The only reason to EURUSD recovery may come from US SidE: “An ultra-dovish, discouraging FOMC statement. ”

Technically:

The pair broke the symmetrical triangle. As I have mentioned in my previous articles this formation is usually a sign of consolidation ahead of another directional move in the main trend.

I have published a harmonic bullish pattern on Friday which can be used for a minor correction. The pair is likely to test the broken baseline of the triangle.

1.13300 is the first target of the pair – to retest the broken line – Upside is capped by EMA 50 and EMA 100 on the H4 Charts. USD Bulls is likely to use this pullback as a selling opportunity.

On the downside, 1.12700 and 1.12200 will the near term targets of USD Bulls.

On the upside, 1.13670 and 1.14200 are the key levels.  Firm daily closings above 1.14200 may open a gate 1.15300 where the big sellers will be waiting for to sing … ” Where u think u r going …”

EURUSD may trade in a sideways manner between  1.12200 and 1.13500  until Wednesday.

Our midterm targets are 1.12200, 1.11600 and 1.10800 as long as the current fundamentals remain unchanged. We will use all pullbacks as selling opportunities.

Any potential intraday/midterm trade idea will be published for the members.

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DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money

EURUSD Forecast: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

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