By RoboForex Analytical Department
The first week of the year was really volatile for the market major. On Monday, it recovered and secured near 1.0680.
The reason for the nervous reaction was publication of the minutes of the US Fed’s meeting. The document mentioned inadequacy of emotional conclusions based on just the Fed’s decision to fight with inflation. As a result of all this, the USD got stronger.
Next, December reports on the US labour market came out. The unemployment rate dropped to 3.5%, though no changes had been anticipated. The NFP grew to 223 thousand instead of 200 thousand expected. The average wage growth decreased to 0.3% m/m from 0.6%. All this was good, but later the ISM report was released, and it demonstrated a serious decline in December. This sent the USD down – it could not ignore the fact that the economy keeps slowing down.
On H4, EUR/USD completed a wave of decline to 1.0482. Today the market has completed an impulse of growth to 1.0635. At the moment, the market has formed a consolidation range around this level. With an escape upwards, a pathway for a wave of growth to 1.0766 opened. After the pair reaches the level, a correction to 1.0635 should begin, followed by growth to 1.0785. Technically, this scenario is confirmed by the MACD: its signal line is directed strictly upwards, which suggests the continuation of a wave of growth.
On H1, EUR/USD has formed an impulse of growth to 1.0634. The market has formed a consolidation range around it. With an escape upwards, a pathway for the wave of growth to 1.0766 opened. The goal is local. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal line is above 80. After the target level is reached, a link f decline to 50 is expected.
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.