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EURUSD targets upper range of monthly sideways trend

The single currency logged losses on Monday, January 10, down 0.32 to 1.1325. Against the backdrop of declining US index futures and rising 10year UST yields, the key pair declined to 1.1285. The price remained in the November 30, 2020 range and bounced off the 1.1335 support level. The daily candle closed with a bearish body and a long lower shadow. Todays macro agenda GMT3 1200 Italy retail sales November 1320 Eurozone ECB President Christine Lagarde speech 1700 US Cleveland Fed President Loretta Mester speech 1730 Kansas City Fed President Esther George speech 1800 US Jerome Powell confirmation hearing before the US Senate Banking Committee Current outlook By the time of writing, the single currency was hovering at 1.1336, while major currencies were trading in positive territory against the US dollar. Fears of faster monetary policy tightening by the Fed persist in the markets. Traders have shifted their focus to Wednesdays US consumer inflation print, which could exert an impact on  monetary policy expectations. The 10year UST yield stands at 1.76 a twoyear high. If the yield enters a correction, EURUSD will continue its ascent to the 1.13601.1375 range. The upper bound of the monthly sideways range lies at 1.1385. Once price action reaches 1.1360, selling can be expected to resume. Heightened volatility is anticipated during todays speeches by Lagarde and Powell. Bottom line The euro closed slightly in the red on Monday. The market continues to be heavily impacted by…

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