- EUR/USD[2] trades within rising channel
- EUR[3]/USD[4] Price action remains at the mercy of risk sentiment
- Moving Averages[5] provide additional support and resistance for the pair
EUR[6]/USD[7] prices continue to trade within the rising channel preceding an array of high impact economic events[8] scheduled to take place throughout the course of the week.
Although the prospects of a Covid-19 vaccination appear to be promising, the discovery of new variants combined with a rollout that has lagged behind the promises of the Trump administration, have hindered the prospects of a swift economic recovery, highlighting the urgency for the still looming Fiscal Stimulus package. With renewed lockdown measures implemented throughout Europe and the United States, this weeks major risk events may create additional volatility, driving price action in either direction. For the USD[9], apart from the Wednesday’s highly anticipated Federal Reserve policy meeting[10], other major data releases include the advance estimate for Q4 GDP, the December PCE report, December advance durable goods orders and Conference Board’s index of consumer confidence .
DailyFX Economic Calendar[11]
Meanwhile, Germany, Europe’s[12] largest economy will release January’s inflation data, GDP and unemployment data.
DailyFX Economic Calendar[13]
Currently EUR[14]/USD[15] continues to trade within the rising channel[16] with the formation of a bearish engulfing candle[17] providing a possibility that short-term selling pressure may break the slight uptrend which has prevailed since mid-Jan. Meanwhile, the 50 and 100 period Moving Average[18] continue to encapsulate price action, while trading in an area of confluency which
