FxWirePro: EUR/USD gains some upside momentum but still bearish
The EUR/USD pair traded in higher range on Monday as dollar rise was halted after investors reduced appetite for risk as markets reassessed the outlook for the U.S. economy after Donald Trump is inaugurated as President …
The EUR/USD pair traded in higher range on Monday as dollar rise was halted after investors reduced appetite for risk as markets reassessed the outlook for the U.S. economy after Donald Trump is inaugurated as President later this month.
Chicago Federal Reserve President Charles Evans said on Friday the Fed could raise interest rates three times this year, faster than he had expected just a few months ago and in line with the majority of his colleagues.
The comments from Evans reinforced the view that the Fed, which raised interests rates in December for the first time in a year, could step up the pace of its rate hikes if the incoming Trump administration unleashed fiscal stimulus.
Further upside in this pair should be limited as dollar is set to strengthen against euro on rate hike view.
To the upside, the strong resistance can be seen at 1.0638 a break above will take the pair towards next resistance level at 1.0700.
To the downside, immediate support can be seen at 1.0523 levels, a break below will open the door towards next level at 1.0478.
