By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Monday, 13 December, the major currency pair is trading at 1.1300.
Last Friday’s statistics on the US Consumer Price Index were not surprising, although a bit unusual. The indicator skyrocketed to 6.8% y/y in November. On MoM, inflation was 0.8% against the expected reading of 0.7%.
Based on the latest inflation reports, among other things, the US Fed may announce its decision to speed up the closure of its QE programme by at least fifty per cent. In this case, the programme may be щук as early as March 2022 and the Fed may start discussing the rate hike in May.
Investors believe that the regulator may raise the rate by 50 basis points next year.
In the H4 chart, EUR/USD is trading downwards to reach 1.1120 and may later consolidate there. If the price breaks the range to the upside, the market may start a new correction with the target at 1.1363. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 and may later continue falling towards new lows.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
As we can see in the H1 chart, EUR/USD is forming another descending structure to break 1.1243 and may later continue falling with the short-term target at 1.1166. After that, the instrument may correct to return to 1.1243 and then resume falling towards 1.1100. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving below 20, thus implying further decline towards new lows.
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.
- The Dollar Index strengthened on Powell’s comments. The Bank of Mexico cut the rate to 10.25% Nov 15, 2024
- EURUSD Faces Decline as Fed Signals Firm Stance Nov 15, 2024
- Gold Falls for the Fifth Consecutive Trading Session Nov 14, 2024
- Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations Nov 13, 2024
- USD/JPY at a Three-Month Peak: No One Opposes the US Dollar Nov 13, 2024
- Can Chinese Tech earnings offer relief for Chinese stock indexes? Nov 13, 2024
- Bitcoin hits an all-time high above $88,000. Oil remains under pressure Nov 12, 2024
- Brent Crude Stumbles as Market Sentiments Turn Cautious Nov 12, 2024
- Bitcoin hits new record high just shy of $82,000! Nov 11, 2024
- The Dow Jones broke the 44 000 mark, and the S&P 500 topped 6 000 for the first time. The deflationary scenario continues in China Nov 11, 2024
