Breaking forecast 10.13.2017
EURUSD under pressure. Turn on caution.
On Friday morning, it was reported that the ECB decided to reduce the program of liquidity injections into the markets from January next year by two times: from 60 billion euros per month to 30 billion per month. This, on one hand, the tightening the monetary policy of the ECB – and the equivalent of raising the euro rate. But, on the other hand, this is bad news for the euro area economy – and a minus for the euro. In addition, the intrigue around the ECB meeting on October 26 disappeared. The information is unofficial, but there is no doubt that this is the preparation of markets by the ECB – quite consciously.
Anyway, the growth of the euro lasted a week, since October 6 – stopped, and the euro under pressure.
We “include caution” – buy from 1.1790 – put a stop-loss in breakeven.
Buying are now only from 1.1770. It is also possible to buy on the breakthrough maximum of 1.1880.
Selling for a breakthrough down 1.1668.
Today at 12.30 pm London time – important news on inflation in the US will be published. Economists expect a rise in inflation – if so, then a sharp decline in the euro will be seen.
The material has been provided by InstaForex Company – www.instaforex.com