Despite some volatility, in general, nothing has changed, and the single currency continues to tread water. In principle, maybe this has something to do with the data on claims for unemployment benefits in the United States. The number of Americans who applied for unemployment benefits last week fell by 11000, while continuing claims increased by 32,000. And continuing claims carry much more weight. However, after the release of these data, the euro dipped instead of rising. So economic reports are not relevant. The market is in a suspended state due to the content of the minutes of the Federal Open Market Committee meeting. And if that is the case, today’s eurozone inflation report will also have no effect. Especially since this is final data, which should only confirm the preliminary assessment that the market has already taken into account.
The EUR/USD pair has become stagnant near the base of the corrective cycle. At the same time, the bearish sentiment still prevails, despite the overall scale of the correction exceeding 400 pips.
On the four-hour chart, the RSI indicator is moving in the lower area of 30/50, thus reflecting increasing bearish sentiment among traders.
On the same time frame, the Alligator’s MAs are headed downwards, which points to the direction of the corrective phase.
Outlook
Keeping the exchange rate below the 1.0900 mark may lead to an increase in selling volumes, and the price could fall further. In this case, the euro could fall towards the area of 1.0800/1.0850.
In an alternative scenario, traders are considering the possibility of a slowdown in the corrective cycle, transitioning into a flat phase.
The comprehensive indicator analysis in the short-term and intraday periods points to a corrective move.
The material has been provided by InstaForex Company – www.instaforex.com
Despite some volatility, in general, nothing has changed, and the single currency continues to tread water. In principle, maybe this has something to do with the data on claims for unemployment benefits in the United States. The number of Americans who applied for unemployment benefits last week fell by 11000, while continuing claims increased by 32,000. And continuing claims carry much more weight. However, after the release of these data, the euro dipped instead of rising. So economic reports are not relevant. The market is in a suspended state due to the content of the minutes of the Federal Open Market Committee meeting. And if that is the case, today’s eurozone inflation report will also have no effect. Especially since this is final data, which should only confirm the preliminary assessment that the market has already taken into account.
The EUR/USD pair has become stagnant near the base of the corrective cycle. At the same time, the bearish sentiment still prevails, despite the overall scale of the correction exceeding 400 pips.
On the four-hour chart, the RSI indicator is moving in the lower area of 30/50, thus reflecting increasing bearish sentiment among traders.
On the same time frame, the Alligator’s MAs are headed downwards, which points to the direction of the corrective phase.
Outlook
Keeping the exchange rate below the 1.0900 mark may lead to an increase in selling volumes, and the price could fall further. In this case, the euro could fall towards the area of 1.0800/1.0850.
In an alternative scenario, traders are considering the possibility of a slowdown in the corrective cycle, transitioning into a flat phase.
The comprehensive indicator analysis in the short-term and intraday periods points to a corrective move.
The material has been provided by InstaForex Company – www.instaforex.com
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