Instrument: EURUSD
Technical Analysis
Bullish Preference:
A Buy position is envisaged if the price trades above 1.08445 with take profit at 1.08557
Bearish Preference:
A Sell position is envisaged if the price trades below 1.08283 with take profit at 1.08083
Fundamentals:
4PM USD CB Consumer Confidence
Comment:
On Thursday, the European Central Bank and Bank of England will also unveil their latest interest rate announcements. Both are seen raising rates by 50 basis points. “The closer markets get to this week’s central bank events, the more unpredictable day-to-day price movements will get,” said analysts at ING in a note. “That said, we stick to our view that the next couple of days are likely to be dominated by profit taking on longs and, in the case of euro markets, by the realisation that pricing rate cuts in 2024 is premature.” Heading into the start of the U.S. session, stocks in Europe were in the red as investors had a chance to gauge fourth-quarter euro zone growth data. Preliminary figures from the European Union’s statistics agency showed that the currency area unexpectedly eked out quarterly growth of 0.1% in the final three months of 2022. Economists had predicted that it would contract by 0.1% instead. On an annual basis, growth during the period was 1.9%, also above estimates.
Analysis: SCRUM team
