EUR / USD – EUR / USD Price Forecasts on Price Consolidation Measures Prior to Powell's Speech

The EUR / USD pair, which spent most of the day yesterday fluctuating above the 1.13 threshold, was under pressure during the North American session and fell to its highest level. low level since November 15 at 1.1278 before moving to a consolidation phase.

The bank note also received additional support following the hawkish comments of Richard Clarida, vice president of the Federal Reserve. Moreover, the common currency has also come under pressure from Italy regarding its intention to reduce the deficit target to 2% in a Reuters report later contradicted by the party's economic adviser in power, La Lega, Armando Siri, who said the government was planning to reduce the budget deficit to 2.2% or 2.3%.

The EURO is slightly above its minimum of the night

However, the news that Italy is seeking to alter the budget deficit target is good news for Euro-bulls, as this can be interpreted as a sign that negotiations between the EU and the EU Italy on budget difficulties are going in a favorable direction. At the time of writing this article, the EURUSD is trading at near neutral levels at 1.1298, up 0.09% on the day. Investors are now focusing on a speech by Fed Chairman Powell in which he wants to raise rates for 2019. The tone of the offer around the US greenback could increase if Powell reaffirms the gradual tightening and indicated that rates should exceed neutral level, but there is also a chance for a decline in the tone of supply as it puts the spotlight on growing risks for the US economy .

On the front of the publication, in addition to the speech of the President of the Fed, Mr. Powell, US markets will see the release of preliminary data for US GDP for the third quarter, new data on home sales, the trade balance for October and data on crude oil inventories, all of which have been forecast alarmist.

On the European markets, the calendar is largely silent, apart from German consumer climate data from GfK, which is expected to display slightly lower data than previously read. From a technical point of view, the daily chart shows a downward trend in prices below the simple 200-day moving average, while the 4-hour chart shows an RSI below 50 marks and a stochastic indicator also in heavily oversold territory. further decline in prices in the near future.