Forecast for EUR / USD pair on February 13, 2019

EUR / USD pair

Yesterday, the euro fulfilled the scenario exactly as expected, reaching the target level of 1.1262 which it was not able to achieved by 5 points on Tuesday and rushed into corrective growth. The estimated target resistance of 1.1335 was attained but the balance indicator line on the four-hour chart managed to adapt to the price increase ahead of it. Now, it is approaching the MACD line (blue) on the indicator trend line. The expected vanishing point is 1.1360 near the Fibonacci retracement level of 38.2%. Also, the resistance line is at 1.1362 in the price channel on the daily chart.

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The head of the Federal Reserve Jerome Powell spoke about rural policy at a forum yesterday evening. He discussed only in general terms about the economy, noting the good state of the labor market and the absence of signs of recession. Given the general context of the presentation, investors did not focus on such a seemingly optimistic assessment.

Today, there is an extensive block of economic indicators for January, including consumer price indices, construction of new houses, foreign trade balance, labor costs, as well as, data on oil reserves and petroleum products and the performance of Fed members R. Bostic L. Mester and P. Harker. Depending on the aggregate information, the volatility may increase, which allow us to slightly expand the target range of this correction at 1.1360 / 86 to the Fibonacci level of 50.0%. In this case, the price will be higher than the trend line of the price channel of the daily timeframe but such cases of false exits have already occurred on December 10 and November 20 (marked by arrows on the daily chart).

The material has been provided by InstaForex Company - www.instaforex.com