FX.co ★ Forecast for EUR / USD on January 31, 2019

EUR / USD

The results of the Fed meeting yesterday were "aggressively soft." The regulator turned out to be much darker in economic expectations and is now ready, as Powell said, to use "the complete set of its instruments, including changing the size and composition of the asset portfolio." But somewhere we were right, trade wars put pressure on the Fed, now it will be harder for financial institutions to keep the dollar rate on long-term strengthening. This means that the strengthening of the dollar will be at a slower rate. Geopolitical tension is already becoming a permanent backdrop for financial markets, and at the center of this tension is the US.

At the moment, we see that the price breaks through the target level of 1.1500. On the H4 graph, the Marlin oscillator signal line turned up from the zero lines. We are waiting for the euro at the next target level of 1.1570, this is the maximum on January 10 and the minimum on July 19 of last year.

Upon reaching the target level, the price may turn down as already today, sales of new homes in the US are expected to rise from 544 thousand to 569 thousand in November, and tomorrow labor data may be better than forecast, as Jerome Powell hinted yesterday's performance. In any case, the current situation of employment of the Fed is completely satisfied.