Weekly Analysis for CFD Brokers
In Today’s session EURUSD remains volatile after it declined yesterday to its lowest in a month, while USD continues to gain ground against the other major currencies following the testimony of Yellen before Congress which boosted expectations that the Federal Reserve likely to raise interest rates at the upcoming meeting.
The testimony of the Fed Chief Yellen before Congress indicated that rates hike is likely to be at the Fed’s upcoming meeting in March along with the gradual increases policy in the interest rate, she warned that waiting too long to raise interest rates might be unwise decision and would have a negative impact on the economy, thus putting pressure on the Fed to raise rates eventually.
Following Yellen’s comments the USD rebounded against the major currencies hitting its highest level in three weeks, putting further pressure on Euro under the divergence in monetary policies between the ECB and the Federal Reserve, thus Euro continues to extend its losses.
Elsewhere, markets are closely watching the updates of Greece debt crisis with the continued efforts to reach an agreement of on the next stage of the bailout by next 20 February which increase tensions over European financial markets, following a lower demand of Euro.
Technical Analysis of EURUSD 15 – 17 February
EURUSD pair is trading at 1.0566, as the price reversed to the uptrend after it failed to breakout 38 Fibonacci retracement on the four-hour time frame as shown in the chart.
However EURUSD pair still traded to the downtrend, it is traded currently below Moving Average line, MACD indicator shows a negative crossing to the downtrend while Stochastic indicator shows a positive crossing to the uptrend on the four-hour time frame.
So, CFD Brokers should expected that price will decline targeting 1.0525 level and then 1.0470 level till the weekend.
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