Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/USD: a mirror downwards?
Information is not investment advice
After reaching 1.2170 at the beginning of the week, EUR/USD corrected downwards and has been in a fluctuating consolidation below that level. Technically, 1.2170-1.2180 is the resistance channel that saw the currency pair come there a week ago. Before that, the last time EUR/USD was that high was in only December 2017 – February 2018. That means this resistance area is very strong and tactically important. It may send EUR/USD downwards to the support of 1.2060, but 1.21 would need to be crossed first. Even if EUR/USD eventually goes upwards to march at 1.22, this downward correction is possible just from a technical “fairness”. The likelihood of a downward scenario increases if Brexit turns out to be a no-deal. So watch Brexit, and watch EUR/USD against the resistance area 1.2170-1.2180 – a bounce off is very possible.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.