Looks like Crypto and Indices have registered for a diving competition! With major indexes, as well as Crypto pairs, even Metals falling apart, we are coming back into very precise and seasonal times of Forex Trading. What drove the markets last week?
Let’s dive in!
What moved the markets?
Stocks. Tech stocks led the plunge Friday after the three major US indexes all had their worst weeks since 2020.
GBP. U.K. Prime Minister Boris Johnson is under an investigation that is looking to finish this week. Just as the news is flying in, it has caused massive moves in the Pound markets, expect the volume to continue this week as well.
USD. The Fed’s January two-day policy meeting starts tomorrow, and attention will be turned to their timeline. Expect volatility whilst the US announces its interest rates and monetary policy plans.
EUR / USD – A pair to watch
We have been willing to see the dollar index moving to the upside after rushing quite a few equal lows created during the consolidation period during the holiday season. Check it out here
Today, we are looking for a few targets on the currency pairs, but preferably Eur Usd, which is very much in sync with the Dollar Index. After we left the consolidation and pushed for a 1.1450 big figure, we are back in the consolidation with an expectation to continue to the downside.
Looks like initially, we are attacking the Lows left from the Consolidation at 1.1220 level which is quite valid to happen throughout this trading week. Furthermore, 1.1200 psychological levels, as well as lows of 1.1170, are to be attacked as well. Let’s see how it pans out!