Article By RoboForex.com
With the absence of any significant catalysts the main currency pair is trading in a sideways channel.
The euro stabilized – at least, a strong lateral trade channel now holds it from a further fall.
The macroeconomic calendar is almost empty this week, even less European data is published. The market chose to ignore this morning’s data on consumer price inflation in Germany. The already known information on the ABS program, which is, in fact, is not a full stimulation of the euro zone economy, was already taken into account for the market prices. Decisions of the Federal Reserve to tighten capital requirements of local banks, investors also took calmly and without interest. There are two possibilities: either the “bears” have exhausted their strength, which is quite natural, where we can wait for “turbulence” in the narrow corridor, or in the market is waiting for someone’s weighty words for a major correction.
Honestly, the first scenario still seems more viable.
For now the side corridor for the euro/dollar is seen within the boundaries of the values of 1.2865-1.3050.
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It is possible that the “flat” in the main pair will stretch on for a while, because no appearance of important information is expected.
RoboForex Analytical Department
Article By RoboForex.com
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.