[EUR] Euro in the Correction 2021 0128

EUR/USD four-hour chart, source:FXDD.com

 [EUR] Euro in the Correction 2021 0128

cf. [EUR] Euro Sideways 2021 0126

cf. [EUR] Still Bullish Euro 2021 0123

cf. [EUR] Rebounding Euro 2021 0120

Gjallarhorn keeps the long position of the euro in the futures market. 

The fluctuating EUR/USD stepped down along the bottom band of Bollinger Bands in the four-hour chart. It still oscillates around the main downward trend line in the chart.

It is needed to watch whether the price breaks through the adjusted main downward trend line around 1.2170. The euro which retreated yesterday tries to rebound around 1.21, now.

 

And the investors should notice the possibility of forming the Head-and-Shoulders pattern in the daily chart, too. If then, the euro may fall to 1.1860.

FOMC statements on Wednesday didn't get out of the market's expectation. FOMC froze the benchmark interest rate 0.0~0.25 percent and maintained its $120 billion monthly pace of bond purchases.  Fed Chair Jerome Powell reconfirmed the Flexible Form of Average Inflation Targeting.

Powell didn't concern the recent rising inflation expectation and said the global disinflation pressure and confirmed there wouldn't be the Quantitative Easing Tapering for a while.

Though the dovish stance of Fed, the currency pair fell from the ahead of the FOMC statement release and the press conference. It dropped over one big since Europe session. The euro dropped to the lowest since January 18 on Wednesday as dovish comments from Dutch Governor and the Fed’s downbeat appearance called the investors' risk-averse sentiment and the dollar's rising.

The forex traders are waiting for the Advance GDP in forth quarter released on Thursday.

Christine Lagarde, the president of the European Central Bank emphasized the foreign exchange rate of euro is watched strengthening verbal intervention.

Bloomberg cited an anonymous ECB official as saying that markets are underestimating the odds of a further cut to the minus 0.5 percent deposit rate.

The economy growth in Eurozone seems not to recover soon. And the lockdown against the re-proliferation is strengthened, it made the investors to concern the double dip in Europe.

Meanwhile IMF, the International Monetary Fund forecasted the 5.5 percent growth of the world economy in the year with the World Economic Outlook Report. It was adjusted 0.3 percent point up than the 5.2 percent of the expectation in last October. IMF anticipated the vaccine injection against COVID-19 would help the economy recovery.

------------------------------------------

Gjallahorn does not provide any signals, but tries for traders to get the insight into the market.

You can ask by messenger and e-mail.

Facebook messenger and telegram(@morgenluft) 

e-mail - kmuk001@gmail.com

You can join telegram channel t.me/gjallarhorn_report .

If this report was helpful to you, please support it. The amount of your support is up to you.

PayPal  kmuk001@gmail.com. 

Thank you.

e-mail - kmuk001@gmail.com

Telegram - @morgenluft

Telegram broadcasting - t.me/gjallarhorn_report

https://www.facebook.com/Gjallarhorn.report/

http://morgenluft.blogspot.com

#Gjallarhorn, #EUR, #euro, #EURUSD