With the USD is about to likely ramp up further against the EUR, and the EUR facing uncertainty of Brexit, it is likely that the pair will see some decline in the next two weeks.
We are currently in an uptrend from November 2016 with a very strong trend resistance (black dotted line on chart). With the current economic events approaching and market being where it is at the moment, we should see the pair at around 1.11 right before the FOMC Rate Decision, which will most probably be unchanged, and cause the USD to have a short rally causing the pair to violate its current trend line and head lower.
The Brexit will affect Europe and the EUR to a large extend, not only the UK. Any such uncertain economic event tends to affect currencies badly. If the pair really end up violating its trend-line we might see a further decline reaching the 1.08 on the 22nd June right before Brexit.
I would suggest and trades done to be small and with appropriate stop losses as we may see high volatlity and strange market moves.
Safe and successful trading!
We are currently in an uptrend from November 2016 with a very strong trend resistance (black dotted line on chart). With the current economic events approaching and market being where it is at the moment, we should see the pair at around 1.11 right before the FOMC Rate Decision, which will most probably be unchanged, and cause the USD to have a short rally causing the pair to violate its current trend line and head lower.
The Brexit will affect Europe and the EUR to a large extend, not only the UK. Any such uncertain economic event tends to affect currencies badly. If the pair really end up violating its trend-line we might see a further decline reaching the 1.08 on the 22nd June right before Brexit.
I would suggest and trades done to be small and with appropriate stop losses as we may see high volatlity and strange market moves.
Safe and successful trading!