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EUR/USD Daily Fundamental Forecast – July 20, 2017

By:
Colin First
Published: Jul 20, 2017, 02:21 UTC

The EURUSD pair managed to give back some of its gains that it had been making over the last few days as the dollar made a minor recovery all across the

EUR/USD Daily Fundamental Forecast – July 20, 2017

The EURUSD pair managed to give back some of its gains that it had been making over the last few days as the dollar made a minor recovery all across the markets over the last 24 hours. At this point of time, there is not much to be read into this move so far as the correction has been very small compared to the rise that it has undergone over the last few days but today is likely to be crucial.

EURUSD Consolidates Ahead of ECB

What should encourage the bears in this pair is the fact that the pair has traded below the crucial 1.1540 mark during the course of the day and with some strong selling regions up ahead, it could be a tough battle between the bulls and the bears. As we had said, today is likely to be a crucial day in the short term trend of the EURUSD pair as we have the ECB rate announcement, statement and the press conference later in the day.

EURUSD Hourly
EURUSD Hourly

The announcement would have nothing to look forward to as the ECB is expected to hold rates but the statement and the accompanying press conference is likely to be noted with interest. There has been a lot of tapering talk over the last couple of weeks or so and this was fueled by some of the speeches of the ECB President Draghi. This, along with the weakness in the dollar, have been the main reasons for this uptrend in the last couple of weeks and the traders and investors will watch to see if Draghi continues to be hawkish and whether he gives any hints of tapering.

There has been nothing in the data that shows that Draghi would not be hawkish but he would also be wary of the euro strengthening too much which is likely to affect the economy and the stock markets as well. It remains to be seen how he is going to balance all of this in his conference. We also have the unemployment claims data from the US and all of these are likely to bring in a lot of volatility in this pair.Any kind of correction in the EURUSD pair is likely to be bought into and hence traders need to be careful.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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