Forecast for EUR / USD for December 5, 2018


On Tuesday, there was a slight panic in the markets. Yielding to pessimistic estimates of a temporary improvement in trade relations between the United States and China, investors began to massively withdraw from stocks and shift into government bonds. As a result, Dow Jones collapsed -3.1%, and the euro lost 12 points. The peculiarity of a small decline in the euro is that it has previously grown by 65 points. In the evening, the Head of the Federal Reserve Bank of San Francisco, John Williams, spoke with optimistic forecasts for economic growth and employment, expecting a decline in unemployment below 3.5%. Of course, on the eve of today's publication of the Beige Book and Friday labor data, such a message is tantamount to an insider story.

Technically, the euro punctured the balance line resistance on a daily scale, but it already consolidated below it this morning. On the four-hour chart, the price is under both indicator lines, and the Marlin oscillator signal line penetrated the decline zone. We are waiting for the strengthening of "bears" and the price movement to the first target of 1.1190, after which the euro can tune in to work out support for the price channel in the 1.1090 area.



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