EURUSD SELL

EURUSD

The minutes of the ECB's mid-December meeting cautioned against complacency as persistent price pressures could hinder achieving the 2% inflation target before 2026. The ECB is concerned about higher wages, as labour unions may demand higher wages in 2024 after seeing real wages decline in 2022 and 2023. This could lead to higher labour costs, which could be passed on to consumers, further driving up prices.

On Tuesday, the pair broke out of consolidation, trading below the 50-day SMA. Today, the pair is testing the 200-day simple moving average (SMA), followed closely by 1.0831. The EMA indicator suggests that the momentum is in favor of the downside. While the US economy remains relatively strong, Europe's stagnant growth continues to weigh on the Euro. However, growth is expected to ease further.

Currently, the market is consolidating, and I want to add to my position. To do so safely, I would need to wait for a breakout in either direction and enter the trade on the retest. As far as the targets let's look at the closest levels of structure.

If the existing market price exceeds the previously established range, it is possible that a short-term uptrend may emerge. The primary purpose of this trend would be to test the 200 EMA before the market resumes its downward trajectory. This could be due to several factors, including changes in market sentiment, supply and demand factors, or other unforeseen circumstances. It is important to monitor the market closely during such periods of volatility to ensure that you are in a position to make informed decisions that align with your investment goals. EURUSD