EUR/USD Signal Update
Yesterday’s signal expired without being triggered.
Today’s EUR/USD Signals
No signal is given today.
EUR/USD Analysis
Yesterday was another very quiet day, which was not a surprise as we are awaiting major news releases that are highly likely to affect the USD and therefore this pair. The key news will be released tonight after London closes and therefore there is no signal for today’s London session.
To summarize the situation, we are in period of slightly bullish consolidation within a long-term downwards trend, and a break below 1.2850 after the news tonight is quite likely to see a further fall in this pair. The problem is that there may not be much room to fall further quickly as there is likely to be strong support at last year’s double bottom at the key psychological level of 1.2750, which would be a logical place to take short profits.
Alternatively, if tonight’s news weakens the USD against the longer-term trend, we would seem to be poised for some kind of upwards move, and in fact we are seeing some minor bullishness in the EUR lately. The crucial level that has to be broken for a move up would be around 1.3000. Beyond that level, the next stop would probably be somewhere between 1.3100 and 1.3154. After that, we would see somewhere around 1.3225.
There are no high-impact events scheduled today concerning the EUR, but there are regarding the USD. At 1:30pm London time there will be a release of US Core CPI data, followed later by the FOMC statement and projections and the Federal Funds rate at 7:00pm. It is likely to be quiet before approximately 6:30pm.