Euro-Dollar rate rose 72 pips yesterday and had a bullish start today too, the high volatility of EUR/USD coincides with news from both economic areas, USA and Eurozone, due to the meetings in central banks about the monetary policies.
The Federal Reserve lets think that the increase of the interest rate will be on a slow route, December’s increase to 1.5% is almost sure, but the inflation is still low and the policy of FED in 2018 could be more cautious than expected. European Central Bank is going to discuss about ECB monetary policy today: the market is rewarding the Euro and EUR/USD reached 1.18 rate again, thanks to a technical outlook of which I wrote just yesterday (read That’s why I bought EUR/USD: the effects of ECB/FED divergency on forex).
EUR/USD: today’s market mover
Today’s news scheduled by the economic calendar will come from Euro area above all. In the morning, Markit economic institute is going to relaise Purchasing Managers Indices (PMI) about France, Germany and Eurozone. German GDP will be relaised too. Finally, ECB monetary policy meeting account will close the European session.
EUR/USD: technical analysis
This is what the chart showed just yesterday, Euro-Dollar exchange rate bounced on 1.1716 technical support and broke the bearish short-term channel, getting out of its consolidation phase and moving to the 1.1857 level.
This is wath the chart shows right now, the bounce was successfull and EUR/USD surmounted the 1.18 price, moving to 1.1857.
In the middle-long term, the major could continue the bullish trend until 1.2243 and 1.2678. Contrariwise, a pullback under 1.1716 could avoid this outlook and procrastinate the climb.