EUR/USD Daily Fundamental Forecast – January 9, 2018
The EURUSD pair slid lower during the course of trading yesterday in a move that was not violent but was something that the market seemed to be anticipating. The whole of last week was spent by the euro in trying to break through the 1.21 region but that proved to be largely unsuccessful as the dollar managed to steady itself towards the end of the week.
EURUSD Slides Lower
The move higher over the last few weeks had happened on low volume and the market was anticipating for some correction at least. The fact that the euro could not break higher was further proof that the traders were not yet ready for another bullish leg in the pair and it was pretty obvious that the pair had to correct to collect more buyers at the bottom before it tries to move ahead again. The dollar managed to hold itself steady despite the weak NFP report that came in on Friday.
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Most of the action in the pair was done and dusted by the time that the US traders walked in and the moves once the US session began was more of consolidation and ranging as the traders did not know which direction to move and hence chose to just position their trades and watch for further developments in the market. With the pair breaking through 1.1980, this is likely to act as resistance for the time being and the line in the sand for the short term would be this region.
Looking ahead to the rest of the day, we do not have any major economic data from either the US or the Eurozone. So, it can be safely said that the pair would consolidate on either side of the 1.1980 region with a bearish bias for the day. More action is expected only later in the week with data flowing in from the US and the Eurozone.