Yesterday’s meeting of the ECB came out as boring as expected, GDP forecasts came out even a little weaker: 1.1% for the current year versus 1.2% earlier and 1.4% for next year. The subsequent speech by Christine Lagarde was also neutral, she identified the economy as standing still after the previous weakening. But this was enough for investors to be optimistic (the absence of negativity is already positive), especially amid the British pound’s uncontrollable growth. The euro traded in the range of 50 points and has grown by another 60 points in the Asian session today.
Also yesterday, US President Trump published a tweet about the proximity to a trade deal with China. There were rumors that tariff increases for Chinese goods scheduled for December 15 would not be introduced. If the deal does take place, then in the future it can be taken as the victory of the United States in a trade war, respectively, the demand for dollars will increase.
In the current situation, the euro has an open target of 1.1215 – a Fibonacci level of 100.0% (November 12, 2018 low). Overcoming the level opens the second target of 1.1250 (August 6, 2019 peak). We doubt higher growth.Nevertheless, you should wait until Monday, the 16th, when the issue of the deal is resolved.
The price is completely in an upward trend on the H4, we are waiting for an increase to 1.1215.
Origin: InstaForex
