The EUR/USD pair seem bearish after the US CB Consumer Confidence release. Here is my technical analysis of the EUR/USD pair.
27 December, AtoZForex – The CB showed that it still expects inflation in the common currency region to rise significantly in the first quarter of 2017 and will exceed 1.0%. Moreover, it forecasted that global growth is set to accelerate in the next year.
US CB Consumer Confidence release
The central bank cautioned that policy uncertainty in the US due to Donald Trump’s victory in the Presidential election and unbalanced commodity prices may still place pressure on the global economic retrieval. Separately, Germany’s annual import prices rebounded 0.3% in November, growing for the first time in four years, compared to a drop of 0.6% in the previous month.
Xtrade's research team team added:
The US CB Consumer Confidence consensus forecast of 109.0 on today’s release is a 1.8% increase from last month, amidst the ongoing transition and paradigm shift to President-elect Donald Trump. Other recent indicators support this view — and we expect at least this growth — though the explosion in health-care costs and consumer liquidation of savings are somewhat distorting:
• US consumer spending growth remains robust.
• The Bloomberg Economic Expectations index has surged to a peak
• Christmas tree sales were up 10% this year, the largest growth in years.
EUR/USD Technical Analysis
The EUR/USD pair is trading towards the upside border of the strengthening range. The price is forming the expanding triangle pattern. Moreover, in my opinion, the market may continue to fall inside the downtrend with the target at 1.0330.
The EUR/USD pair has faced considerable volatility as the world has faced multiple events of volatility such as the tech boom. The real estate bubble and the European Debt Crisis which still has yet to find the long-term resolution. The pair is forming a support 1.0342 and resistance of 1.0459.
Think we missed something? Let us know in the comments section below.