EUR/USD Daily Fundamental Forecast – January 10, 2018
The EURUSD moved lower during the course of trading yesterday as the dollar continued to hold steady without gaining too much strength in too little time. With this move, we can safely say that the euro has reversed around half of the move higher that it had made over the last couple of weeks in December which once again lends credence to the belief that any large moves made on low volume are generally reversed.
EURUSD Continues Lower
The euro dropped towards the 1.1915 region during the course of trading yesterday but has since recovered overnight to trade close to the 1.1950 region as of this writing. The weakness in the euro is clear for all to see and we believe that any bounce would be viewed only as a correction of the move lower and hence sold into. The pair moved lower yesterday despite the fact that there was no major headline or fundamentals supporting such a move and hence this has to be viewed as a general reversal of the move higher on lower volume.
The euro continues to hold steady but the dollar has been gaining in strength in a slow and steady manner. Most of the moves came during the Asian and European sessions while the moves during the US sessions on both days of this week have been generally muted. This could be due to the fact that the stock markets seem to be the focus of attention during this period as they continue to make record highs in the various global markets.
Looking ahead to the rest of the day, it is likely to be another dull day on the news front as there are no major economic and fundamental news from the US or the Eurozone that would be released during the day. We are likely to see the pair continue on its slow and steady move lower during the course of the day which should threaten to break through the 1.19 region.
This article was originally posted on FX Empire