Market Overview

EUR/USD Forecast: Euro Oscillates Around 1.1400 As Markets Price Out ECB Rate Hike Chances In 2019

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  • Euro trade around 1.1400 for the third day in a row as sideways trend prevails.
  • Deteriorating Eurozone data saw ECB President Draghi acknowledging the economic slowdown.

The EUR/USD is trading little changed at around 1.1400 for the third day in a row as the sideways trend prevails on the market after the German economy slowed to a 5-year low in 2018 and the ECB President admitted the economic slowdown in the Eurozone in 2019.

“It’s a slowdown, which is not heading towards a recession but it could be longer than expected before,” Draghi said before the European Parliament on Tuesday this week, adding that the ECB has the tools to address a potential recession as the present monetary policy stance remains very accommodative already.

With the US government being shut down and only minor data scheduled for the economic calendar in the Eurozone, the EUR/USD is expected to remain in the consolidation phase after flash move below 1.1500 last Friday. 

Technically the EUR/USD broke from the consolidation triangle on the downside while it is still moving within a sideways trend. Lower EUR/USD means that the market is pricing out the chances of the ECB hiking rates in 2019 as the deterioration in the Eurozone economy became obvious. The broader sideways trend is prevailing with the short-term breakout from the triangle structure indicating further US Dollar strength although the technical oscillators including the Relative Strength Index and Slow Stochastics are pointing downwards on a 30-minute chart. 

EUR/USD 30-minutes chart

eurusd_30_minutes_chart-636833955378971720.png

Posted-In: EUR/USD euroEarnings News Eurozone Forex Global Markets

 

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