We have outlooked several promising Forex pairs and the result can surprise you!
EUR/USD will have a busy week
Information is not investment advice
With the Federal Reserve’s meeting and the release of Nonfarm Payrolls, EUR/USD is going to have an active week. Last week, it turned down from the 100-day MA and closed below 1.11 on Friday. On Monday, we witness a recovery in the euro. However, sellers will likely re-emerge between 1.11 and 1.1117 (50-period MA on the H4). The downside targets lie at 1.1055 and 1.1035 (50-day MA). Only the rise above 1.1130 will open the way up to 1.1150 and then possibly 1.1185/1.1200.
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.