Trade in the European market resumed tonight after the Christmas break. Traders prefer selling the US dollar.
The euro/dollar pair is moving upwards to a 1.5-week high. The pair has already reached the 1.1150 level. Analysts expect a correctional movement after such a rally that occurred amid absence of any fundamental data. The current market situation raises concerns. Our advice for today is to remain cautious and avoid trading. If the pair reverses and starts the correctional movement, it can drop to 1.1034, which corresponds to 76.4% Fibonacci. However, the euro/dollar pair can also consolidate above 1.1145. This, in its turn, can attract bulls and push the pair even higher. The forecast is rather ambiguous.
The pound/dollar pair also hit a 1.5-week high. From the beginning of the trading session to the moment when we were preparing this video review, the pair jumped by 110 pips. If the pair consolidates above 1.3160, a confident bullish trend can be formed. However, the pound/ dollar pair should rise significantly to reach the mentioned level. Taking into account such attractive prices, technical experts advise traders to open sell positions. The deals can even more profitable as the UK government took a Christmas brake and there is no news about Brexit. Besides, trading mood is not influenced by other fundamental data.
There is a strong correlation between the euro and the Swiss franc. The US dollar is weakening amid rising optimism about the upcoming signing of a trade agreement between Washington and Beijing. This, in its turn, helped the Swiss currency to gain ground. The dollar/franc pair dropped to 0.9760. However, it failed to break below this level. The pair is likely to move up to 0.9820.
That’s all for now. Watch next video, where I’ll tell you about the beginning of the US session. See you in several hours on our InstaForex TV channel!
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