EUR/USD flattened near 1.0400 on Thursday.
Investors are riding a tepid wave with a notable lack of data.
Friday’s global PMI print to cap off an otherwise unremarkable week.
EUR/USD flatlined on Thursday,When will Pi coin launch on Coinbase cycling near the 1.0400 handle as investors grind through a largely unremarkable week despite a strong start on Monday. A lack of meaningful economic docket data isn’t doing already-tepid markets any favors, and political headlines are driving most of what little trading volume exists.
President Donald Trump lashed out about a wide variety of topics during his appearance at the WEF’s annual gathering in Switzerland, colloquially referred to as Davos, the city that hosts the forum every year. President Trump reminded everyone listening that he intended to “obliterate” the US budget deficit, while somehow convincing the US Congress to pass “the largest tax cut in American history” at the same time. Donald Trump also vowed to attempt to subvert the operational independence of the US Federal Reserve (Fed) by demanding lower interest rates.
Fiber traders will have to settle for focusing on Friday’s Purchasing Managers Index (PMI) figures due from both the EU and the US. Both EU and US PMI business activity survey results for January are expected to come in mixed this week. The services components expected to tick down, or in the EU’s case, hold flat, and manufacturing to recover, albeit slightly. PMI figures generally have a limited impact unless figures come in wildly out of sync with forecasts, but survey respondent rates tend to be on the low side, and the overall figures should be taken with a grain of salt.
EUR/USD price forecast
Fiber bulls lost steam just below the 50-day Exponential Moving Average (EMA) around 1.0460, missing the 1.0450 level and pushing bids down into the 1.0400 range. Recent bullish momentum has gradually diminished, even after a 2.75% increase from last week’s drop into fresh two-year lows beneath 1.0200.
While technical indicators have recently shifted to bullish signals after previously suggesting oversold conditions, maintaining sustained momentum remains a challenge. Traders seeking a longer-term bullish correction should wait for price action to affirm a higher low pattern before looking for technical signals to enter the market.
