I want to get long at 1.1300 with a stop loss at 1.1200 and a profit target of 1.1440.
EUR/USD 240 min Chart - EUR/USD is Supported
FOMC in Focus
Risk-off continues to be the order of the day and for the most part, most of the major forex pairs have been having trouble making much headway.
As we move into the final trading week for the year all the focus is on the FOMC and what might happen with interest rates in 2019.
While the expectation is clearly for a hike in December of 25 basis points, many are now expecting to hear a far more dovish tone from Fed boss Jerome Powell.
His recent comments, suggesting that US interest rates are now ‘neutral’ have led many to think that the expectation for multiple hikes in 2019 will now clearly start getting wound back.
If that is the case that has the potential to see the USD weaken and the EUR/USD might just jump.
Key Economic Data
With much of the focus on the US at the moment, it is easy to forget about the Eurozone. With no rate hikes on the agenda anytime soon, one of the key metrics to watch is CPI.
CPI is a measure of inflation and the target for the ECB is between 2-3%. At the moment we are at the bottom end of that. We wouldn’t be looking at a rate hike until we can push towards the top end and that’s why Monday’s number will be important.
The EUR/USD bounced off the 1.1300 multiple times now and we have really established a bit of a range between 1.1300 and 1.1400.
Trading a breakout in either direction would be a good strategy, however, I’m looking for a little weakness in the USD so I feel that 1.1300 might be able to hold up this week.
EUR/USD - Key Levels
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