The U.S. currency is losing upside momentum. The US dollar showed an appreciation of 13% in 2014, and in 2015 only 9%. Bloomberg experts predict a weaker strengthening of the greenback in 2016.
However, the fracture of the downtrend has not yet taken place. Soft monetary policy of the ECB limits the ability of the “bulls” in EUR/USD. From the Federal reserve, market participants waited for a rate hike, supporting the dollar. The fed is serious about further tightening of monetary policy.
Technical analysis and forecast of EUR/USD for the week
On the daily chart of EUR/USD shows that the pair is trading in the area of 1,08 — 1,10. This week is expected to launch this range. However, the main goal is at the level of 1.05 — downtrend Euro/dollar is still in place.
On the four-hour chart of EUR/USD has formed a model “head and shoulders”, implying a decrease from the first target in the region of 1.08. The pair’s growth is limited by the resistance of 1.10. The RSI indicator is expected to rebound from the trend line.
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