EURUSD
The pair travels towards a pretty awesome range. The longest recession in Euro zone finally come to an end and the modest recovery possibly driven by exports improved euro zone jobs and inflation data. The more concern is about deflation.
Inflation rose to 0.9% in November. In November ECB surprised the street by its interest rate decision. In the next policy meeting we expect ECB to take any further action. The ECB should also be looking to offset the tightening of monetary conditions coming from US. The further action of the prices decides by the next move of ECB.
The pair halts at 1.3622 double top made on 29th of November and found a support at 1.3580. The next run above the 1.3622 can create a high at 1.383
The pair is travelling towards north to the final leg wave up 1.42 with strong support at 1.3547. Close below 1.3417 signs a bearish perspective on positional basis.
Recommendation: go long with sl 1.3570 for the target 1.3620
On the negative flip side the Fed is moving to tamper at one time which may cause sharp fall in this pair and we could see a strong rally in USD. On the bearish perspective recent support at 1.34 is the stop loss for all the positional holders and go short with sl 1.3417 for the targets 1.2.
