EURUSD all possible scenarios before FOMC and ECB
This is a crucial week for all dollar and Euro crossed pairs. Conscensus says that Fed is about to increase interest rates from 1 to 1.25 on wednesday. US economy remains strong with good data for weeks now but the dollar is still challenged against Euro.
No change in the Euro side expected on thursday for ECB interest rate decision but the market will probably react to Mario Draghi speech.
We have 3 possible scenarios this week :
EURUSD breaks 1.1950 to reach 1.2050 then 1.2400 (Long)
EURUSD simply decreases below 1.17 to reach 1.15 (Short)
We think that looking for an entry point to go short on EURUSD is the best strategy so scenario 1 is the one we prefer in order to make pips.
No change in the Euro side expected on thursday for ECB interest rate decision but the market will probably react to Mario Draghi speech.
We have 3 possible scenarios this week :
EURUSD breaks 1.1950 to reach 1.2050 then 1.2400 (Long)
EURUSD simply decreases below 1.17 to reach 1.15 (Short)
We think that looking for an entry point to go short on EURUSD is the best strategy so scenario 1 is the one we prefer in order to make pips.