EUR/USD Analysis » Bears are in play while below 1.0950
- The EUR/USD bullish rally is stamped out and a bearish setup is in play.
- It already has a bearish bias as the EUR/USD pair pulls back to 1.0950.
When Reuters reported that European Central Bank (ECB) leaders suggest the ECB should raise the interest rate by 50 basis points in February and March and continue to raise the rate in the following months.
Meanwhile, the EUR/USD pair remained faithful to the expected pattern as follows:
Analyze EUR/USD pre-available
(A bearish pattern could play out)
» Get the best exchange rates for your international transfers
The analysis argued that if the bulls engage, then 1.0870/90 and potentially the 1.09 psychological level could be attractive for ours who anticipate a premium for the week’s opening sessions.
The euro’s bullish rally against the dollar has faded. However, the rest of the callback has plenty to do until critical US calendar events and the US Dollar remains capped at resistance. Therefore, no dramatic movement is expected during the day ahead.
However, a potentially low setting is in play for the EUR/USD pair and the price is low as it is below 1.0950.
Pair Ross J Burland, FXStreet
Ross Burland began his career in Forex trading after the City of London in 2001. Initially employed by the FX department of Sucden (UK) Ltd as Corporate Sales and Junior Dealer (FSA qualified investment adviser), Ross a I eventually ran the institutional FX spot in the Forex market before being recruited to join Investec Bank’s FX department on Gresham Street in a client sales/trading role, specializing in cash management and special finance.
The opinions expressed here are those of the author alone and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, you should do your own research when making a decision.
Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell cambio contracts or CFDs. Although the information contained in the document comes from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages which may result in a breach.