EURUSD Sideways Range Opportunities

17 Mei

This day the EURUSD faces news from European industrial production, tobacco, energy and food sectors. There is also a statement from Vice President de Guindos at noon today. The data reported by the US yesterday was quite poor with a similar result to expectations, in the case of manufacturing production slightly better than expected, and the Fed's inflation expectations were met. The Fed's balance sheet showed $7,353 billion versus $7,304 billion in the previous quarter. The Fed's available reserves are 3,331Trillion versus 3,416Trillion in the previous balance sheet. It is very likely that gold withdrawals from African countries and China are affecting the entire Fed balance sheet in favor of China and Russia. As well as Russian expropriations of US assets as punishment for the expropriation of assets to benefit Ukraine. Today's US monthly Production data is expected to be slightly down, keeping GDP similar year-on-year, although expected to be worse than last year. It would not be surprising to see a bearish continuation of the dollar given the current situation.


At the moment, looking at the chart, it seems that the Euro dollar is in the middle of a long range. If we look at the price bell its formation is a monocamp, so it can indicate a high trading at the price of 1.08422 dollars per euro. This is nothing new given that the big capitals are containing the price to continue with their acquisitions in the European market, as has happened with the Yen against the dollar. At the moment it is possible that the high of 1.10030 and a low of 1.06000 can be tested without excessive intention of breaking out of this range. The RSI has marked a signal at the overbought limit at 70% turning to the mean and the evolution confirming this lateralized permanence.

Ion Jauregui - AT Analyst




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