As it was forecasted in my previous EUR/USD analysis last week was calm. The market started consolidation. Fundamentals were also neutral.
This week we expect two important events – ECB Press Conference and FOMC minutes. I don’t think we will hear something special but never knows with ‘these funny guys’. By the way, I know Fed announced there will be no interest rate hikes this year. But increasing inflation in US makes me think we will have one. So, let us see. Maybe, in a few months, we will get some hints from Fed. Technically not much has changed also.
I think choppiness in EUR/USD will continue for some time. Still, consider shorts from a recent high near 1.12450. ECB Press Conference and FOMC minutes possibly will give some spike to 1.12700 – 1.12900 and form so-called ‘upthrust’ by Wyckoff. Watch price action to find an entry for shorts with 1.11200 – 1.1100 target. I think this range will be rejected and give us a nice long opportunity with 200 pips target near 1.13400 – 1.13700 range. Where I expect the final wave down to 1.10600 will start. And here we go – a big buying opportunity. Well, it’s a general expectation and it will be corrected based on fundamentals and price action.
This week we expect two important events – ECB Press Conference and FOMC minutes. I don’t think we will hear something special but never knows with ‘these funny guys’. By the way, I know Fed announced there will be no interest rate hikes this year. But increasing inflation in US makes me think we will have one. So, let us see. Maybe, in a few months, we will get some hints from Fed. Technically not much has changed also.
I think choppiness in EUR/USD will continue for some time. Still, consider shorts from a recent high near 1.12450. ECB Press Conference and FOMC minutes possibly will give some spike to 1.12700 – 1.12900 and form so-called ‘upthrust’ by Wyckoff. Watch price action to find an entry for shorts with 1.11200 – 1.1100 target. I think this range will be rejected and give us a nice long opportunity with 200 pips target near 1.13400 – 1.13700 range. Where I expect the final wave down to 1.10600 will start. And here we go – a big buying opportunity. Well, it’s a general expectation and it will be corrected based on fundamentals and price action.