EUR/USD:SELL From RESISTANCE Area SHARK Patter SHORT Setup

EUR/USD has grown during the Monday session reaching 1.076 the currency pair seesaws around the highest levels since June 2022 as bulls run out of steam. Yesterday we have recognized a Bearish Shark pattern where the price reach the entry point at 1.13% FIBO extension where the price today may have a bearish impulse as retracement after the last bullish rally. The Stochastic is still in the overbought area ready to drop and the Idea will be violated if the price will reach the 1.079 value as a stop loss.

Fed Chairman Jerome Powell will participate in a panel discussion and the U.S. will also release inflation data for December. Investors and the Fed will be watching these events closely to see if speculation about central bank easing is correct.

Last week's NFP data released showed 223,000 new jobs in the U.S. economy in December and a drop in the unemployment rate to 3.5%. However, investors' attention was drawn to the slowdown in average hourly earnings, which raises hopes of a slowdown in the Federal Reserve's interest rate hikes.

The combination of slowing wage growth and declining business activity in the service sector could allow the Fed to moderate the pace of rate hikes at its first meeting of the year on Feb. 1.

In the coming weeks, investors should keep an eye on corporate results and inflation. A slowdown in inflation would be positive. On the other hand, investors remain concerned about the risk of recession and its impact on corporate earnings.

Commentaire: