Expected Sideways For Euro

Yesterday’s Trading:

The first half of Friday saw the euro down against the dollar significantly. However, by the end of the trading session in Europe, everything was back to how it was. The euro/dollar broke from the 112thgradient at 1.1079. Due to an empty calendar, the mood of the players was set by European and American share prices.

Market Expectations:

This week market participants will be waiting for the central banks to convene: Japanese, American and Swiss. The Fed FOMC meeting is the key event of the week.

The euro/dollar is trading around 1.1157 in Asia. The economic calendar is empty. It’s unlikely that the data for industrial production will have any real effect on the euro. I expect to see the daily candle form like a Doji on Monday (close of the candle at the same level as opening).

Day’s News:

12:00, Eurozone industrial production for January.

21:00, RBNZ governor to speak.

Technical Analysis:

Intraday target maximum: 1. 1210, minimum: 1. 1130, close: 1. 1165.

Intraday volatility for last 10 weeks: 103 points (4 figures).

The week closed up for the euro above 1.11. This leads me to believe that the euro will continue to strengthen against the USD. The closest resistance is at 1.13 on the daily timeframe. I expect a correction to the LB on Monday.