Local slump of Euro and the question of the rate hike

EUR/USD
As we’ve already noted, the slump in the single European currency was local. The bulls restored the status quo very quickly. It appears that nothing particularly important will happen before Wednesday, but Janet Yellen might change everything on Wednesday. The probability of a rate hike is not high: The market estimates it at just 2%. But the subsequent comments might prod the bulls to buy anew. For now, the bears are not in a very advantageous position, given all the political risks – both foreign and domestic.
Technically, the ascending price channel has not changed much yet. The support can be found at 1.1900; the resistance at 1.2200. It’s quite possible that 1.2000 – 1.2050 might be the intermediate target.


The Bollinger Bands are headed up, displaying a confident bullish trend. The only unsettling factor now is the divergence between the price and the relative strength indicator.


GOLD
Speaking of gold, we can say that the target in the decline of the yellow metal could be $1310 or $1300 per troy ounce. If growth resumes, the target will be $1385 – $1395 per troy ounce.
Fundamentally, the situation with North Korea and the statement by the US permanent representative to the UN that “The United States has exhausted all its options,” again threatening North Korea with the use of force to solve the problem, favor gold.

Nikolay Dudchenko, exclusively for Olymp Trade

Olymp Trade Review