Our free forex signals service trade today is a buy order on the EUR/USD pair.
The EUR/USD pair edged higher after the FOMC even if the Federal Reserve was more hawkish than expected in the December meeting.
The Dollar Index plunged, that’s why the currency pair turned to the upside. Technically, it’s still trapped between 1.1186 and 1.1374 levels. Escaping from this chart pattern could bring new trading opportunities.
In the short term, the USD remains under pressure as the US reported some poor economic data. Yesterday, the Retail Sales and the Core Retail Sales came in worse than expected.
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After the FOMC, the USD was somehow expected to resume its growth, but it seems that the greenback was too overbought to be able to resume its appreciation. As you already know, the FED could end its bond purchases in March after doubling the pace of taper.
Also, three rate hikes are expected in 2022. On the other hand, the ECB maintained its Main Refinancing Rate at 0.00% as expected today.
US Unemployment Claims At 206K Versus 196K Expected
Earlier, the US received a hit from the US economic data. The Unemployment Claims was reported at 206K above 196K expected, the Industrial Production registered only a 0.5% growth versus 0.6% expected, while the Capacity Utilization Rate was reported at 76.8% below 76.9% estimates.
Also, the Flash Services PMI dropped from 58.0 to 57.5 points even if the specialists expected potential growth to 58.9, while the Flash Manufacturing PMI dropped unexpectedly from 58.3 to 57.8, the traders expected an increase to 58.6.
From the technical point of view, a valid breakout above the 1.1374 static resistance could activate an upside continuation. The upside pressure is high after registering only a false breakdown below the lower median line (lml).
Free forex signals – BUY EUR/USD at 1.1410
Free forex signals entry price and takes profit
Instrument: EUR/USD
Order Type: BUY STOP
Entry price: 1.1410
Stop Loss: 1.1219
TP1: 1.1696
My Risk: 1%
Risk / Reward Ratio: 1:1.5
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