empty
26.01.2023 08:25 AM
Breaking forecast for EUR/USD on January 26, 2023

Since the macroeconomic calendar was absolutely empty, the euro returned to its local high and may climb even higher amid the US statistical reports, especially the GDP data for the fourth quarter of 2022. The initial estimate is likely to show a slowdown to 1.6% from 1.9%. This could hardly be considered a positive factor for the greenback. Since there are more and more rumors about an inevitable recession, a slowdown in economic growth may only fuel fears. That is why the GDP data is enough to spur a further decline in the US dollar. What is more, forecasts for the US unemployment claims are also gloomy. Thus, the overall number of claims may increase by 16,000. In particular, the number of initial claims may surge by 12,000, whereas the number of continuing claims may increase by 4,000. In other words, all the forecasts are negative. If the predictions come true, the euro will soar to new local highs.

US GDP Growth Rate

This image is no longer relevant

The number of long positions on the euro resumed rising. As a result, the quote approached the local high of the upward cycle from January 23.

On the four-hour chart, the RSI technical indicator is hovering in the upper area, which corresponds to the bullish sentiment among traders. On the daily chart, the indicator approached the overbought area but did not cross it. Under the current conditions, it points to traders' great interest in long positions on the euro.

On the four-hour and daily charts, the Alligator's MAs are headed upwards, which confirms the uptrend.

This image is no longer relevant

Outlook

If the price consolidates above 1.0940 at least on the four-hour chart, the volume of long positions will increase. In this case, the mid-term uptrend is likely to continue, allowing the pair to approach the psychological level of 1.1000.

The alternative scenario presupposes a bounce off the local high like it was on January, 23.

In terms of the complex indicator analysis, we see that the in the short-term, intraday, and mid-term periods, the indicators are pointing to the upward cycle.

Dean Leo,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Hot Forecast for EUR/USD on December 10, 2024

The currency market continues to consolidate around levels reached on Friday, primarily due to the complete absence of any macroeconomic data. With today's economic calendar remaining empty and the European

Dean Leo 05:52 2024-12-10 UTC+2

Hot Forecast for EUR/USD on December 9, 2024

The unemployment rate in the United States increased from 4.1% to 4.2%, which was not entirely unexpected. However, the dollar strengthened. The key driver was the creation of 227,000

Dean Leo 06:27 2024-12-09 UTC+2

Hot Forecast for EUR/USD on December 6, 2024

Eurozone retail sales growth slowed significantly from 3.0% to 1.9%, much worse than even the most pessimistic forecasts. Yet, the euro still managed to gain ground. It is impossible

Dean Leo 06:31 2024-12-06 UTC+2

Hot Forecast for EUR/USD on 05.12.2024

The rate of decline in producer prices in the Eurozone slowed from -3.4% to -3.2%, contrary to expectations of an acceleration to -3.5%. This indicates that, while likely to decrease

Dean Leo 06:37 2024-12-05 UTC+2

Hot Forecast for EUR/USD on December 4, 2024

The number of job openings in the United States was expected to decrease by 63,000 but increased by 372,000. However, it's difficult to draw any conclusions from this data because

Dean Leo 06:30 2024-12-04 UTC+2

Hot Forecast for EUR/USD on December 3, 2024

Instead of rising from 6.3% to 6.4%, the Eurozone unemployment rate remained unchanged. However, this did not impact the market, and prices stayed flat. This is partly due to news

Dean Leo 06:30 2024-12-03 UTC+2

Hot Forecast for EUR/USD on 02.12.2024

Despite the acceleration of annual inflation in the Eurozone from 2.0% to 2.3%, the euro failed to rise and even weakened. Although the scale of the decline was limited

Dean Leo 05:52 2024-12-02 UTC+2

Hot Forecast for EUR/USD on November 27, 2024

As expected, the Federal Open Market Committee meeting minutes didn't reveal anything new. Given the dollar's excessive overbought condition, a continuation of the corrective movement, that is, some strengthening

Dean Leo 06:24 2024-11-27 UTC+2

Hot Forecast for EUR/USD on November 26, 2024

Despite some fluctuations, the market is essentially at a standstill. This pattern may persist until the FOMC meeting minutes are published this evening. A significant reaction is only likely

Dean Leo 06:46 2024-11-26 UTC+2

Hot Forecast for EUR/USD on November 25, 2024

The preliminary PMI data for the Eurozone delivered a negative surprise. Instead of expected growth, all indicators declined. The Services PMI fell from 51.6 to 49.2 (forecast: 52.0)

Dean Leo 06:26 2024-11-25 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.