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Old 17-01-2019, 11:21
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EUR/USD: good reasons are needed for the Eurodollar growth
01/17/2019
Current situation

The updated data, published on Thursday, confirmed the forecasts of economists that in December annual inflation in the Eurozone amounted to 1.6% against 1.9% in November. In conjunction with the recently published weak data, inflation indicators indicate a decrease in the likelihood that the ECB will be able to increase the rate in 2019.
Against the background of the situation with Brexit, the ECB is likely to take a waiting position at the next meeting to be held next week. January 24 will be published by the ECB decision on rates. Probably, the ECB will also express concern about the worsening growth prospects of the economy.
On Tuesday, ECB President Mario Draghi said that the European economy still needs substantial stimulation. Investors considered this a signal for a possible extension of the QE program.
At the same time, the Beige Book, published Wednesday, drew a positive picture for the US economy. “Overall, the outlook remains positive”, the report says.
Thus, according to economists, the prospects for a substantial strengthening of the euro and the growth of EUR / USD look inconclusive. Probably further weakening of the Eurodollar. For the growth of the pair EUR / USD we need good reasons and a significant weakening of the dollar.
*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics

Support and resistance levels
Despite the corrective growth of EUR / USD, which began in mid-November, negative dynamics prevail below the resistance level of 1.1570 (ЕМА200 on the daily chart).
In case of resumption of reduction, the nearest targets will be the support levels of 1.1350, 1.1285 (Fibonacci level 23.6% of the correction to the fall from 1.3900 level, which began in May 2014), 1.1270 (December lows), 1.1215 (November and year lows).
An alternative scenario involves the breakdown of the short-term resistance level of 1.1440 (ЕМА200 on the 1-hour chart) and the resumption of corrective growth. However, the growth of EUR / USD will be limited by the resistance level of 1.1570.
Support Levels: 1.1350, 1.1285, 1.1215
Resistance Levels: 1.1400, 1.1417, 1.1440, 1.1520, 1.1570, 1.1680, 1.1780

Trading recommendations

Sell in the market. Stop-Loss 1.1450. Take-Profit 1.1350, 1.1285, 1.1215
Buy Stop 1.1450. Stop-Loss 1.1390. Take-Profit 1.1520, 1.1570, 1.1700, 1.1780




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