Initially everything was going according to plan for EUR/USD – it rebounded to resistance at 1.0990 but then, instead of reversing and going down, it soared up to the values of last September-October. The reason for that was simply comments by US official William Dudley who expressed doubts about the raising interest rates in 2016.
Forecast for Upcoming Week
Summing up the views of several dozen analysts from world leading banks and broker companies as well as forecasts based on different methods of technical and graphical analysis, the following can be suggested:
In the shorter term, the indicators and graphical analysis on H1 point to EUR/USD entering a sideways trend in a 1.1250-1.1220 range. As the previous week showed, all major currency pairs’ movements will certainly depend a lot on Fed Chairwoman Janet Yellen’s speech this Wednesday. After the speech, EUR/USD may rise to 1.1350. However, over 70% of the experts and graphical analysis on D1 believe that the market has almost recovered after the bad news from the , and the pair should return to 1.0400-1.0600 in the next couple of weeks.
Roman Butko, NordFX