30.12.2016
EUR/USD
EUR/USD
Technical Analysis
The EUR/USD making significant breakout at key level of 1.05170 which is I discussed previously. Price start making immediate reversal after the rejection at the level of 1.03691 which is formed triple bottom pattern followed by BUOB candlestick reversal pattern. The breakout of EMA55 support the upward movement.
I have late entry as soon as I realized the potential set up but eventually the price move as predicted. I have no intention to cash out soon but I am participate for long term uptrend movement this coming new year. I will waiting for another potential set up after this successful breakout if price tend to make slight retracement and wait for the right pattern to support the decision making.
Fundamental Analysis
We have been saying this for the past couple of weeks ever since the Fed hiked rates and also made a statement that was more hawkish than the market ever expected it to be. It basically laid out the path for at least 2 and probably 3 hikes over the next year and this basically means that the funds are ready to be moved into the US and the dollar as the economy gains in strength. Though the presence of Trump does throw in a bit of uncertainty into the picture, the market is just not ready to hear all that just yet and is busy focus on pricing in the rate hikes which are about to come in 2017.The situation will become more clear as we enter into the new year and the traders begin to get back to their desks. The liquidity will be much stronger and the moves will also help us to identify trends and flows even better.
We have been saying this for the past couple of weeks ever since the Fed hiked rates and also made a statement that was more hawkish than the market ever expected it to be. It basically laid out the path for at least 2 and probably 3 hikes over the next year and this basically means that the funds are ready to be moved into the US and the dollar as the economy gains in strength. Though the presence of Trump does throw in a bit of uncertainty into the picture, the market is just not ready to hear all that just yet and is busy focus on pricing in the rate hikes which are about to come in 2017.The situation will become more clear as we enter into the new year and the traders begin to get back to their desks. The liquidity will be much stronger and the moves will also help us to identify trends and flows even better.
But so far, there does not seem to be much stopping the onward march of the dollar and the Eurozone leaders are not making it any easier for themselves next year with the Brexit process set to begin and Germany also going into an election in the middle of 2017, an election that will be watched with interest to see how Merkel fares in it. A loss for her could be nothing short of catastrophic for the Euro as she has been the strongest leader in the Eurozone so far. Till then, we will just have to wait and see how the dollar strength pans out
Source
Metatrader 4
FXEmpire
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