EUR/USD Daily Fundamental Forecast – February 20, 2018
The EURUSD pair continued to tumble lower on dollar strength though this happened on a day of low news and less volatility and liquidity and hence the move needs to be taken with a pinch of salt and the traders and investors need to be careful that they do not get carried away by all the euphoria surrounding the dollar.
EURUSD Consolidates
The dollar continues to gain which has forced the pair to push below the 1.24 region during the course of trading yesterday and it continues to trade below that region as of this writing. The dollar continues to be buoyed by the decently good data that has been coming in from the US and though the data has not been strong enough to push the dollar in a strong manner, it has been just about enough to keep the dollar bulls interested for a period of time and this has helped the dollar to gain across the board.
There was not much economic data or fundamentals from the market yesterday and it was a bank holiday as well which meant that the action in the markets was limited. The majority of the market still seems to be confused on which way the dollar would be moving. The euro continues to be strong as the incoming data has been supportive and so the focus is entirely on the dollar to see how it moves in the coming weeks and that is likely to determine the trend.
Looking ahead to the rest of the day, there is no major news scheduled to be released from the US or the Eurozone for the day and we expect the dollar strength to prevail during the first half of the day and it would mean that the euro would be under pressure. We could expect some reversal later in the day when the US markets open for the first time this week.
This article was originally posted on FX Empire
