Today, the reason for the weakening of the US dollar will be preliminary data on inflation in Europe, which should accelerate from 8.9% to 9.1%. And this means that the European Central Bank will actively raise interest rates, which will cause the single currency to strengthen. And it will already pull other currencies with it. Given the high significance of inflation, the published data on employment in the United States, which, by the way, should increase by 180,000, will have little effect.
The EURUSD currency pair was conditionally standing in one place yesterday. The movement took place between the parity level and the variable value of 1.0050. In fact, there was a process of accumulating trading forces on the market, where traders took a break, which in the end can become a lever for speculative jumps.
The RSI H4 technical instrument is moving in the upper area of the 50/70 indicator, which, from the point of view of indicator analysis, indicates the prevailing upward interest in the market. Take note that the quote has been moving in the 0.9900/1.0050 horizontal channel for the second week already. Thus, the signal from the RSI H4 indicator may be unstable.
MA moving lines on Alligator H4 have many intersections, which corresponds to the flat stage. Alligator D1 is directed downwards, there is no intersection between the MA lines. This signal from the indicator corresponds to the direction of the main trend.
Expectations and prospectsDespite the existing stagnation, the quote is still moving within the sideways range of 0.9900/1.0050. For this reason, the main decisions will be made by traders after one of the values of the current range is surpassed.
An upward movement in the currency pair is taken into account after keeping the price above the value of 1.0050 in a four-hour period.
A downward trend should be considered after keeping the price below 0.9900 in a four-hour period.
Complex indicator analysis in the short-term and intraday periods have a variable signal due to the current flat. Indicators in the medium term are focused on a downward trend.