{"id":83371,"date":"2016-01-06T06:37:13","date_gmt":"2016-01-06T11:37:13","guid":{"rendered":"http:\/\/countingpips.com\/?p=83371"},"modified":"2016-01-06T06:37:13","modified_gmt":"2016-01-06T11:37:13","slug":"eurodollar-fall-of-euro-to-be-restrained-before-fomc-minutes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/01\/eurodollar-fall-of-euro-to-be-restrained-before-fomc-minutes\/","title":{"rendered":"Euro\/Dollar: Fall of Euro to be Restrained Before FOMC Minutes"},"content":{"rendered":"<div id=\"inves-3506858534\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 6, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By\u00a0Vladislav Antonov, Alpari<\/strong><\/p>\n<p><i><b>Yesterday\u2019s Trading:<\/b><\/i><\/p>\n<p>Tuesday saw the euro\/dollar fall to 1.0710. Pressure on the euro gathered strength after Eurozone inflation data came out. If we take into account that Saudi Arabia is increasing oil discounts for Europe, inflation will remain low for a long while. In this case, the ECB will have to take additional measures with regards to relaxing its monetary policy and this is to down the euro further.<\/p>\n<p><i><b>Main news of the day (EET):<\/b><\/i><\/p>\n<ul class=\"list list_type_disc\">\n<li>From 10:15 to 11:00, EU nations\u2019 December service PMIs;<\/li>\n<li>11:30, UK December service sector business activity index;<\/li>\n<li>12:00, Eurozone manufacturing inflation data;<\/li>\n<li>16:45, US Markit service sector business activity index;<\/li>\n<li>17:00, US ISM service sector business activity index, industrial order data;<\/li>\n<li>17:30, US Ministry for Energy oil reserves;<\/li>\n<li>21:15 EET, FOMC minutes.<\/li>\n<\/ul>\n<p><i><b>Market Expectations:<\/b><\/i><\/p>\n<p>In Asia the euro\/dollar renewed to 1.0772 (45 degrees) due to sales of Australian and New Zealand currencies. Their sale was provoked by negative Chinese statistics. The Caixin PMI in the service sector for December fell from 51.2 to 50.2. The Aussie AiG service sector activity index also fell significantly.<\/p><div id=\"inves-1078321677\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>The euro was trading around 1.0747 at 6:22 EET this morning. Today I\u2019ve gone for a fall in the price to 1.0700. This will take place if the euro\/pound passes 0.7311.<\/p>\n<p>There\u2019s no point in putting complete trust in my forecast since it\u2019s unclear how market participants are going to act before the FOMC minutes come out. My forecasted scenario takes into account their past behaviour and how the indicators are set up at this moment in time. If we go off the daily timeframe, then the rate\u2019s free to head to 1.0518.<\/p>\n<p><i><b>Technical Analysis:<\/b><\/i><\/p>\n<ul class=\"list list_type_disc\">\n<li>Intraday target maximum: 1.0772 (current Asian), minimum: 1.0700, close: 1.0760;<\/li>\n<li>Intraday volatility for last 10 weeks: 100 points (4 figures).<\/li>\n<\/ul>\n<p>The euro on Tuesday fell to the lower limit of the channel. From a minimum of 1.0710 it restored by 45 degrees to 1.0772. I think that the 1.0772 level will remain the session maximum throughout Wednesday. There\u2019s no bull divergence on the AO indicator, meaning there will be another minimum. How deep the euro\/dollar will sink today will depend on the euro\/pound movements. The cross has stopped at the support. If 0.7310 can\u2019t hold, then due to the overall strengthening of the dollar, there are risks we could see a depart beneath 1.0700.<\/p>\n<div class=\" box__gray-area\">\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.alpari.ru\/data\/media\/trunk\/images\/Analytics\/2016\/01\/eur_060116.png\" alt=\"EUR\/USD Hourly Graph\" width=\"650\" height=\"660\" \/><\/p>\n<div class=\"s_invisible_yes\">Source: alpari.com, &#8220;<a href=\"http:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/11790_06012016\/\">Euro\/Dollar: Fall of Euro to be Restrained Before FOMC Minutes<\/a>&#8220;<\/div>\n<\/div>\n<p><em>Article submitted by Alpari.com<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Vladislav Antonov, Alpari Yesterday\u2019s Trading: Tuesday saw the euro\/dollar fall to 1.0710. Pressure on the euro gathered strength after Eurozone inflation data came out. If we take into account that Saudi Arabia is increasing oil discounts for Europe, inflation will remain low for a long while. In this case, the ECB will have to take [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-83371","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/83371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=83371"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/83371\/revisions"}],"predecessor-version":[{"id":83392,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/83371\/revisions\/83392"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=83371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=83371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=83371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}