EUR/USD has reached 1,1500 area on Thursday and even managed to jump over this support. However, we think that the currency pair will stay close to this level and reverse. How is it possible?
Well, let’s see the current fundamental situation around the currency pair. The Fed is hawkish currently as they follow their plan to rise rates step by step (3-4 times per year). This is a very good news for USD, but we think it is already included in the price.
As for Euro, ECB’s head Mario Draghi is very cautious at the moment showing no hawkish neither dovish moods. We think that the European Central Bank takes this neutral position due to the uncertainty of Brexit consequences.
Euro has no chance to grow significantly in this case. European currency shows no intention to fall in the same time. This is the reason we think EUR/USD is likely to reverse and start growing towards 1,1750. There is our closest target lies.
Well, let’s see the current fundamental situation around the currency pair. The Fed is hawkish currently as they follow their plan to rise rates step by step (3-4 times per year). This is a very good news for USD, but we think it is already included in the price.
As for Euro, ECB’s head Mario Draghi is very cautious at the moment showing no hawkish neither dovish moods. We think that the European Central Bank takes this neutral position due to the uncertainty of Brexit consequences.
Euro has no chance to grow significantly in this case. European currency shows no intention to fall in the same time. This is the reason we think EUR/USD is likely to reverse and start growing towards 1,1750. There is our closest target lies.