The euro reached the target range of 1.0615/42. Yesterday’s important U.S. inflation report contributed to this, and overall, the euro did not stay in a horizontal range. Yesterday’s movement added more mystery to today’s Federal Reserve meeting. On the technical side, will there be a double divergence from the current levels? In fact, all the conditions for that have been met.
Second mystery, if the price reaches the next target range of 1.0758/87, will a divergence occur there? (The dotted line on the daily chart is an option). If not, the price will continue to rise to 1.1000. And another question, also among the new ones, to what extent has the market taken into account the 0.50% rate hike? Will there be a reversal of the euro precisely because of this circumstance – the revaluation of the single currency?
Here we come to fundamental uncertainties: how pessimistic are investors about the outlook for the European economy? Yesterday, Italian industrial production for November showed a decline of 1.0% versus a forecast of -0.2%. The eurozone’s industrial production will come out today with a forecast of -1.5% but it is likely to be worse. On Friday, the eurozone’s trade balance for October will be released with a forecast of -32.5 billion euros compared to -37.7 billion in September.
But we also expect a worse figure for this index, as weak trade balance data has already been released this week for the peripheral eurozone countries. And there is another reason why investors may not show a strong desire to buy – even if the rate hike is not 0.75%, but 0.50%, it will still be a 4.50% increase – can the stock market withstand that rate? The stock market withstood the November rate hike with great difficulty. And on the day of the rate hike, the S&P 500 was down 2.5%.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
If you have an interest in any area of Forex Trading, this is where you want to be.
Global Fx Trading Group is a world leader in providing Fx services, o individual traders, including: Unmatched funding programs, on-line education, virtual trading rooms, automation tools, robot building, and personal coaching.
The company was first established by Jeff Wecker, former member of the Chicago Board of Trade, with 25 years in the industry. Jeff has a keen understanding of the needs of Forex traders and those needs are our focus.
Please join our VIP Group while is still FREE …
https://t.me/joinchat/JqsXFBKpyj3YS4bLWzT_rg
Our mission is simple: To enhance as many lives as we can through education and empowerment.
#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom
