Yahoo Finance EUR/USD Daily Fundamental Forecast – February 13, 2018
It was generally a slow day yesterday but it was a day which saw the dollar on the weaker side for much of the day. This was something that we had pointed out in our forecast yesterday and had said that the EURUSD was getting ready for a bounce. The size and the strength of the bounce is something that is yet to be determined but we need to give it a bit more time to see where it wants to go.
EURUSD Moves Higher
The pair had been forming a nice base in the 1.2250 region and hence it was only a matter of time before the consolidation ended and the pair began to move up and we had mentioned as much in our forecast yesterday. But with the lack of fundamentals and economic and data drivers yesterday, the dollar was left to the mercy of the slow market and hence the fall in the dollar was pretty much limited.
It was the first day of the week and hence the slowness in the markets was understandable but this slowness should not lull the dollar bulls into a false sense of security. There is a range of news from the US that is scheduled to be released later in the week and with the onus on the Fed to hike atleast 3 times this year, they would need as much support as they can get from the incoming data so that they can go ahead with their well laid plans for the rest of the year.
Looking ahead to the rest of the day, we do not have any major news from the US or the Eurozone for the day and hence we can expect the consolidation and the ranging to continue on either side of the 1.23 region. The volatility is expected to pick up slightly as compared to yesterday but we continue to believe that the dollar would be on the backfoot atleast for the first half of the week which should help the EURUSD pair to move higher in the short term.
This article was originally posted on FX Empire
