EURUSD Forecast And Technical Analysis: Midterm
- US Inflation knocking at the door.
- Market expectation was 3 rate hikes. And this has been priced already. However, US CPI indicates that FED may go additional rate hike.
- Increasing US Bond yields.
- ECB is not happy with strong – overvalued – EURO.
I would not talk about a trend reversal now. USD Bulls will wait for closings below 1.23000. However, I believe that sellers will be much eager below 1.23000.
1.23900 is the EMA 50 support of the H4 chart. This is the first critical level. If the pair breaks and closes below 1.23900, the next target will be 1.23300. On the daily chart, I see a bearish RSI Divergence.
1.23300 is the level where the sellers will take the leading role. The demand at 1.23000 will clarify the new direction.
It may be too early to speak about it.
We may have a much more clear idea at the end of the week.
Our short-term strategy is to sell below ( need to see one H4 closing ) 123900 with the target 1.23300 and 1.23000.
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